Another problematic rural bank was ordered closed by the Bangko Sentral ng Pilipinas (BSP) and placed under the supervision of the government-run Philippine Deposit Insurance Corporation (PDIC).
Last Thursday, the BSP Monetary Board prohibited the Rural Bank of San Lorenzo Ruiz (Siniloan) Inc. from doing business in the Philippines pursuant to Section 30 of Republic Act No. 7653 or The New Central Bank Act), as amended.
In a circular, BSP Deputy Governor Chuchi Fonacier said the regulator ordered the closure of the rural bank through Resolution No. 210.B issued by the Monetary Board on February 17.
This is the second rural bank ordered closed by the BSP this year. Just last month, it ordered the closure of Rural Bank of San Nicolas (Pangasinan) Inc.
The BSP has been weeding out weak players from the system as its continues to push for mergers and acquisitions to further strengthen the industry.
It recently entered into a partnership with PDIC, the Securities and Exchange Commission (SEC), the Philippine Competition Commission (PCC), and the Cooperative Development Authority (CDA) to streamline the merger, consolidation, and acquisition process among banks.
