MONETARY authorities have shuttered two more rural banks—one headquartered in Agusan del Norte and the other in Quezon—bringing to 14 the number of banks closed this year due to insolvency.
The Monetary Board, the Bangko Sentral ng Pilipinas’ (BSP) highest policy-making body, on July 28 put the Rural Bank of Cabadbaran (Agusan) and the Rural Bank of Alabat (Quezon) under receivership by the Philippine Deposit Insurance Corp. (PDIC), according to a bulletin posted by the insurance agency.
The Rural Bank of Cabadbaran, whose head office was located in Cabadbaran City, the capital of Agusan del Norte, had other offices in Butuan, Cagayan de Oro and Gingoog cities.
The Rural Bank of Alabat Inc., which had its head office in Alabat, Quezon, had two branches in Atimonan and Mauban towns in the province.
The PDIC took over the two banks’ affairs, assets, branches and records on July 29.
Closed earlier
So far this year, the BSP has placed 11 other rural banks under PDIC receivership: Rural Bank of Villaviciosa (Abra) Inc., Lapu-Lapu Rural Bank Inc., Rural Bank of Bayawan (Negros Oriental) Inc., Rural Bank of Basay (Negros Oriental) Inc., Rural Bank of Panay Inc., Koronadal Rural Bank Inc., Rural Bank of Malinao (Aklan) Inc., Surigao City Evergreen Rural Bank Inc., Rural Bank of Amadeo (Cavite) Inc., New Rural Bank of Binalbagan, and Rural Bank of Siaton (Siaton, Negros Oriental) Inc.
Included in the list was the thrift bank GSIS Family Bank, which the Monetary Board closed in May.
But GSIS Family Bank may get a new lease in life as “less than 10” firms have expressed interest in rehabilitating the lender previously controlled by state-run pension fund Government Service Insurance System, according to the PDIC.
The PDIC said a new law (Republic Act No. 10846) that amended the PDIC charter and took effect in June made it quicker for depositors to get their insured deposits.
Under the amended law, payment of deposit insurance would also be based on depositors’ records found to be authentic by PDIC and not just solely on the basis of records maintained by the closed bank.” Ben O. de Vera