Bangko Sentral closes down another rural bank

Bangko Sentral ng Pilipinas (BSP). RYAN LEAGOGO/INQUIRER.net FILE PHOTO

THE BANGKO Sentral ng Pilipinas (BSP) has closed down a rural bank in Cavite, the 10th lender shuttered by monetary authorities so far this year due to insolvency.

In a statement Friday, state-run Philippine Deposit Insurance Corp. (PDIC) said it took over on May 13 the Rural Bank of Amadeo (Cavite) Inc. and its lone branch, assets and records.

The bank’s head office is located in Amadeo, Cavite, while its branch is in Magallanes town in the same province. It was controlled by Andamo-Villanueva Estate Inc. as well as individual members of the Andamo family.

As of end-March, Rural Bank of Amadeo’s deposits totaled P46.42 million across 1,583 accounts. PDIC assured depositors that they would be paid up to the P500,000 maximum insurance coverage per depositor.

Rural Bank of Amadeo was the ninth rural bank closed down this year by the Monetary Board, the BSP’s policymaking body.

The BSP had placed the following rural banks under PDIC receivership: Rural Bank of Malinao (Aklan) Inc., Koronadal Rural Bank Inc., Rural Bank of Panay Inc., Lapu-Lapu Rural Bank Inc., Rural Bank of Villaviciosa (Abra) Inc., Rural Bank of Bayawan (Negros Oriental) Inc., Rural Bank of Basay (Negros Oriental) Inc. and Surigao City Evergreen Rural Bank Inc.

Including the thrift bank GSIS Family Bank, which the Monetary Board also closed down last week, there are 10 closed banks thus far in 2016.

In a text message on Saturday, BSP Deputy Governor Nestor Espenilla Jr. said it did not help that state-run pension fund Government Service Insurance System (GSIS) was unable to sell its 99.6-percent stake in what was formerly known as Comsavings Bank.

“The GSIS has been trying to sell GSIS Family Bank to qualified investors who can rehabilitate it. Unfortunately, that couldn’t move forward because of internal legal disputes. In the end, the Monetary Board determined the bank can no longer continue doing business with safety to its depositors and creditors,” Espenilla explained.

Last year, GSIS tried three times but failed to dispose of its controlling share in GSIS Family Bank through a negotiated sale as interested bidders struggled to secure consent from the family of former Cavite politician Renato Dragon, who held the remaining share.