2 rural banks closed down of 2 banks

The Monetary Board, the policy-making body of Bangko Sentral ng Pilipinas, placed two rural banks under the custody of state-run Philippine Deposit Insurance Corp. on Dec. 10, because of the banks’ unsound financial condition.

The closed banks were the Penafrancia Rural Bank of Calabanga (Camarines Sur) Inc. and the La Union-based Rural Bank of Caba. This brought the total number of closed banks this year to 14, matching the total number recorded in 2014.

The circular from Bangko Sentral did not provide further details on the closed banks, such as the number of branches, owners, total deposit liabilities and total insured deposits.

Prior to Penafrancia and Caba rural banks, the board closed 12 ailing rural banks from Jan. 1 to Nov. 13.

These were the Pangasinan-based Rural Bank of Calasiao Inc., the Benguet-based Rural Bank of Buguias Inc., the Bukidnon-based Xavier-Punla Rural Bank Inc., the Batangas-based Farmers’ Rural Bank Inc., Rural Bank of Taysan (Batangas) Inc., the Surigao-based Siargao Bank (A Rural Bank), Rural Bank of Sta. Magdalena (Sorsogon), Community Rural Bank of Magsaysay (Davao del Sur) Inc.; the Surigao City-based Surigaonon Rural Banking Corp.; Rural Bank of Labrador (Pangasinan); Rural Bank of Magsingal (Ilocos Sur) Inc.; and the Alfonso, Cavite-based Community Bank (Rural Bank of Alfonso Inc.).

In 2014, 14 rural banks were placed by the Monetary Board under the custody of PDIC.

Bangko Sentral said earlier it expected the number of closed banks in 2015 to be lower than last year’s, due to the extension of the Strengthening Program for Rural Banks Plus for another year.

Topics: rural banks
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