MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) ordered the closure of the Rural Bank of Datu Paglas Inc. based in Maguindanao, bringing to five the number of problematic banks shuttered this year.
BSP Deputy Governor Chuchi Fonacier said the Monetary Board issued Resolution 110.A last Aug. 26 prohibiting the Rural Bank of Datu Paglas from doing business in the Philippines pursuant to Republic Act 7653 or the New Central Bank Act.
Fonacier said that state-run Philippine Deposit Insurance Corp. (PDIC) has been designated as receiver with a directive to proceed with the takeover and liquidation of the closed rural bank.
This brought to five the number of rural banks ordered closed by the BSP this year.
Prior to the closure of the Rural Bank of Datu Paglas, the regulator has ordered the closure of the Rural Bank of Caloocan, Rural Bank of Alimodian (Iloilo) Inc., Palm Tree Bank Inc. based in Cagayan de Oro, and Occidental Mindoro Rural Bank Inc.
Last year, the regulator ordered the closure of Providence Rural Bank, Rural Bank of Tibiao (Antique), De La O Rural Bank, San Fernando Rural Bank, and Cooperative Bank of Aurora.
PDIC paid P124.11 million worth of insurance claims for 7,072 valid deposit accounts maintained in five banks, or 76 percent of the estimated total deposit accounts of 9,305.
BSP Governor Benjamin Diokno earlier announced the launching of the Rural Banking Industry Strengthening Program (RBSP) which aims to strengthen the industry in recognition of its critical role in providing financial services in rural and agricultural communities.
“The program is part of the BSP’s broader and continuing efforts to boost the resilience of the rural banking industry, which is a key agent of countryside development as it provides financial services to rural communities, including micro, small and medium enterprises,” Diokno said.
Meanwhile, former Monetary Board member Juan de Zuñiga Jr. has been appointed as a member of the PDIC board of directors as one of the private sector representatives that include Rogelio Guadalquiver Eduardo Pangan, and Reynalto Tansioco.
He replaced former director Anita Linda Aquino who has been serving as member of the Monetary Board since July last year.
Reporting by Albert Rovic Tan