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June 24, 2024

BSP orders closure of Isabela rural bank, marks sixth shut down this ear

Bangko Sentral ng Pilipinas (BSP) has issued an order to close another problematic rural bank, United Consumers Rural Bank Inc.

United Consumers Rural Bank Inc., operating as a standalone bank situated in the Public Market Building in Sta. Rosa, Aurora, Isabela, has been prohibited from operating in the Philippines under the New Central Bank Act.

State-run Philippine Deposit Insurance Corp. (PDIC) took over the closed bank as the receiver and will proceed with its liquidation in accordance with the PDIC Charter.

Depositors will receive payments up to the maximum deposit insurance coverage of P500,000 per depositor.

Individual account holders with valid deposits of P100,000 and below, and without outstanding obligations or acting as co-makers, are not required to file deposit insurance claims.

This brings the number of rural banks shuttered by BSP this year to six, following the closure of Bangko Pangasinan, Rural Bank of San Juan (Southern Leyte) Inc., Binangonan Rural Bank Inc., Rural Bank of San Marcelino Inc., and Rural Bank of San Agustin (Isabela) Inc.