The Monetary Board, the policy-making body of the Bangko Sentral ng Pilipinas, shut down a financially-ailing rural bank in Laguna province with 17 branches and offices across Calabarzon.
The board, in a resolution dated Feb. 21, said it decided to prohibit the Rural Bank of Mabitac (Laguna) Inc. from doing business pursuant to Section 30 of the Republic Act 7653 or the New Central Bank Act.
As a receiver, the board designated state-run Philippine Deposit Insurance Corp. to proceed with the takeover and liquidation of the bank in accordance with Section 12 of Republic Act 3591. PDIC took over the bank on Feb. 22, 2019.
Rural Bank of Mabitac is a 17-unit rural bank whose head office is located at 17 J. Rizal St., Barangay Sinagtala (Pob.), Mabitac, Laguna.
It has two branches in Candelaria and Infanta towns in Quezon province; six extension offices in the towns of Cabuyao, Calamba, Los Baños, Paete, Siniloan and Sta. Maria in Laguna; five micro banking offices in Cabuyao, Los Baños, Paete in Laguna, Tanauan in Batangas province and Tanay in Rizal province.
Rural Bank of Mabitac also has three other banking offices in Nagcarlan, Sta. Cruz and Sta. Rosa, all in Laguna.
Latest available records showed that as of Dec. 31, 2018, Rural Bank of Mabitac had 45,807 deposit accounts with total deposit liabilities of P367.1 million.
Total insured deposits amounted to P288.3 million equivalent to 78.52 percent of total deposits.
The Bangko Sentral earlier ordered the closure of the Bagong Bangko Rural ng Malabang (Lanao del Sur) Inc.
Last year, it shut down 12 small banks because of their unsound financial condition. These included San Francisco Del Monte Rural Bank. Inc. in Quezon City, Lanao del Norte-based Rural Bank of Maigo, Pangasinan-based Malasiqui Progressive Savings and Loan Bank Inc., Rural Bank of Luna (Apayao) Inc., Rural Bank of Pagbilao Inc., Rural Bank of Sta. Elena (Camarines Norte) and Batangas-based Tiaong Rural Bank.
Also closed were Iloilo-based Bangko Buena Consolidated Inc., Batangas-based Women’s Rural Bank Inc., Rural Bank of Initao (Misamis Oriental) Inc., Empire Rural Bank Inc. in Lipa City, Batangas and Rural Bank of Loreto (Surigao del Norte) Inc.