The Bangko Sentral ng Pilipinas (BSP) has shuttered a rural bank in Cagayan due to insolvency.
In an Aug. 18 circular, the BSP said the Monetary Board—its highest policy-making body—prohibited Rural Bank of Claveria (Cagayan) Inc. from doing business.
The Monetary Board placed the rural bank under receivership of state-run Philippine Deposit Insurance Corp. (PDIC).
It also ordered PDIC to take over and liquidate the bank.
Rural Bank of Claveria was the 14th rural bank closed down so far this year.
The 13 other rural banks earlier place by the BSP under PDIC receivership were: 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, Rural Bank of Siaton (Siaton, Negros Oriental) Inc., Rural Bank of Alabat (Quezon) Inc. and Rural Bank of Cabadbaran (Agusan) Inc.
Including the thrift bank GSIS Family Bank, which the Monetary Board shuttered in May, there were 15 closed banks thus far in 2016.
Meanwhile, BSP Deputy Gov. Nestor A. Espenilla Jr. said in an Aug. 8 circular that the BSP had approved the new business name “Manor Bank-A Rural Bank Corp.” of the former Rural Bank of Odiongan Inc.