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April 24, 2024

Problematic rural bank in South Cotabato ordered closed

The Bangko Sentral ng Pilipinas (BSP) has shuttered eight problematic banks this year after ordering the closure of Rural Bank of Polomolok Inc. based in South Cotabato.

The central bank’s Monetary Board issued a Resolution No. 985.A issued last July 14 prohibiting the Rural bank of Polomolok from doing business in the Philippines as mandated under Republic Act 7653 or The Central Bank Act.

State-run Philippine Deposit Insurance Corp. (PDIC) took over the problematic bank with head office address at National Highway, Barangay Magsaysay, Polomolok, South Cotabato last July 18.

It has three branches located in Barangay Poblacion, Alabel in Sarangani; Cagampang St., Barangay Dadiangas South in General Santos City; and the National Highway, Barangay Poblacion, Maasim also in Sarangani.

The BSP earlier ordered the closure of Banco Rural De General Tinio in Nueva Ecija, Farmers Savings and Loan Bank Inc. based in Bulacan, 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).

The number of problematic banks ordered closed by the regulator tripled to 13 last year from five in 2020 as the country has yet to fully recover from the impact of the COVID-19 pandemic.