Cavite rural bank is 18th to be closed this year

The Bangko Sentral ng Pilipinas last week shuttered another rural bank in Cavite, bringing the number of closed countryside lenders so far this year to 18.

State-run Philippine Deposit Insurance Corp. (PDIC) said the BSP’s policy-making Monetary Board, in a Nov. 11 resolution, prohibited Rural Bank of Salinas Inc. from doing business.

As designated receiver, the PDIC took over the bank as well as its affairs, assets, branches and records. The bank’s head office is located at Marseilla Street, Barangay Muzon, Rosario, Cavite. It had two branches.

“Under Section 13 of Republic Act (RA) No. 3591 (PDIC Charter), as amended by RA 10846, a bank that has been placed under liquidation shall in no case be re-opened and permitted to resume banking business. Furthermore, Section 12 thereof expressly provides that banks closed by the Monetary Board shall no longer be rehabilitated,” the PDIC said.

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