The rural bank is now prohibited from doing business.
The Bangko Sentral ng Pilipinas (BSP) has closed down a problematic bank in Isabela, the first bank to be shuttered by the central bank this year.
Bankero Chuchi Fonacier, BSP Deputy Governor, announced the issuance of Resolution 3.A on prohibiting the Rural Bank of San Agustin (Isabela) Inc. from doing business in the Philippines.
The decision was governed by the Republic Act 7653 or The Central Bank Act, as amended, and PDIC was assigned as receiver and to facilitate the liquidation of the thrift bank. The rural bank is the first BSFI to be shut down by the regulator this year.