BSP shutters another rural bank

Another rural bank, this time in Aklan province, has been shuttered by monetary authorities for insolvency.

In a statement yesterday, state-run Philippine Deposit Insurance Corp. (PDIC) said the Bangko Sentral ng Pilipinas’ (BSP) Monetary Board last March 22 placed Rural Bank of Malinao (Aklan) Inc. under its receivership. PDIC took over Rural Bank of Malinao on March 23.

This brought to a total of seven the number of rural banks closed down by the Monetary Board—the BSP’s highest policy-making body—so far this year.

The rural bank had a head office in Malinao town, four offsite banking offices in the towns of Kalibo, Madalag, Malay and Tangalan in Aklan as well as one branch in Cabatuan, Iloilo.

As of end-2015, Rural Bank of Malinao had 8,745 accounts. Total deposit liabilities amounted to P170.2 million at the end of last year.

According to PDIC, total insured deposits reached P157.7 million, accounting for 92.6 percent of all deposits.

“All valid deposits will be paid up to the maximum deposit insurance coverage of P500,000,” PDIC assured depositors, with payments to be given starting the first week of April.

Separately, BSP Deputy Governor Nestor A. Espenilla Jr. said in a March 23 circular letter that they approved 106 applications for new banking offices, mostly outside Metro Manila, during the fourth quarter of last year.

Between October and December 2015, the BSP approved six new regular branches of BDO Unibank Inc.; four regular branches, three regular other banking offices and one extension office of Land Bank of the Philippines, and one regular branch each of Metropolitan Bank and Trust Co. as well as Rizal Commercial Banking Corp.

The BSP also approved the opening of six regular branches of thrift bank Bank of Makati Inc.; 11 microbanking offices (MBOs) of Card SME Bank Inc.; seven regular branches of Philippine Savings Bank, as well as six regular branches of Producers Savings Bank Corp.

Among rural banks, also approved were the establishment of one extension office of Banco Dipolog Inc.; 29 MBOs of Card Bank Inc.; three MBOs of Cooperative Bank of Cotabato, and 30 MBOs of Rizal Bank Inc.