The Bangko Sentral ng Pilipinas (BSP) has closed down the Binangonan Rural Bank Inc, the third rural bank to be closed this year as part of the regulator’s efforts to weed out weak players.
The central bank has designated the state-run Philippine Deposit Insurance Corp. (PDIC) as receiver and directed to proceed with the takeover and liquidation of the closed rural bank.
This is the third rural bank ordered closed by the BSP this year, following the closure of Rural Bank of San Marcelino Inc. in March and Rural Bank of San Agustin (Isabela) Inc. in January.
The central bank closed nine problematic banks in 2022, including the Rural Bank of Galimuyod (Ilocos Sur) Inc., Rural Bank of Polomolok (South Cotabato), Banco Rural De General Tinio in Nueva Ecija, Farmers Savings and Loan Bank based in Bulacan, Metro-Cebu Public Savings Bank, Rural Bank of Mahaplag (Leyte) , Rural Bank of Salcedo (Ilocos Sur), Rural Bank of San Lorenzo Ruiz (Siniloan), and Rural Bank of San Nicolas (Pangasinan).
As part of efforts to strengthen the rural banking sector, the BSP has introduced the Rural Bank Strengthening Program (RBSP) and raised the minimum capital requirements to at least P50 million for small banks with up to 5 branches, P120 million for those with 6 to 10 branches, and P200 million for those with more than 10 branches, with branch-lite units being excluded in the count.