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September 27, 2022

BSP shuts down thrift bank in Bulacan

The Bangko Sentral ng Pilipinas (BSP) has ordered the closure of Farmers Savings and Loan Bank Inc. based in Bulacan.

The Monetary Board issued a resolution last May 12 prohibiting the Farmers Savings and Loan Bank Inc. from doing business in the Philippines as mandated under Republic Act 7653 or The Central Bank Act.

This brought to six the number of problematic banks shuttered this year, including Metro-Cebu Public Savings Bank, the Rural Bank of Mahaplag (Leyte) Inc., the Rural Bank of Salcedo (Ilocos Sur) Inc., the Rural Bank of San Lorenzo Ruiz (Siniloan) Inc., and the Rural Bank of San Nicolas (Pangasinan).

State-run Philippine Deposit Insurance Corp. (PDIC) took over the closed thrift bank and all its branches, assets, records and affairs last May 13 as it aims to proceed with the liquidation in accordance with RA 3591 or the PDIC Charter.

Farmers Savings and Loan Bank is an eight-unit thrift bank with Head Office located in McArthur Hi-way, Brgy. Wakas, Bocaue, Bulacan. Its branches are located in Sta. Maria (2), Angat, Guiginto, Norzagaray, Pulilan, and Bulacan, all in Bulacan.

Latest available records show that as of end December, the closed bank has 4,616 deposit accounts with total deposit liabilities of P442.63 million, of which 72.5 percent or P321 million are insured deposits.

The PDIC assured depositors that all valid deposits and claims will be paid up to the maximum deposit insurance coverage of P500,000 per depositor.

Individual account holders of valid deposits with balances of P100,000.00 and below, who have no outstanding obligations or have not acted as co-makers of obligations with Farmers Savings and Loan Bank are not required to file deposit insurance claims.

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