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July 14, 2024

Another problematic rural bank shut down by BSP

The Bangko Sentral ng Pilipinas (BSP) has ordered the closure of Rural Bank of Mahaplag (Leyte) Inc., bringing to four the number of problematic bank shuttered by the regulator so far this year.

The central bank’s Monetary Board issued Resolutlon No.316.8 prohibiting the rural bank from doing business In the Philippines and designating the state-run Philippine Deposit Insurance Corp. (PDIC) as receiver.

Under Republic Act 3591 or the PDIC Charter, a bank placed under liquidation shall in no case be re-opened and permitted to resume banking business. It also expressly provides that banks closed by the Monetary Board shall no longer be rehabilitated.

Prior to this, the BSP earlier ordered the closure of the Rural Bank of Salcedo (Ilocos Sur) Inc. early this year, the Rural Bank of San Lorenzo Ruiz (Siniloan) Inc. in February and the Rural Bank of San Nicolas (Pangasinan) Inc. in January.