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BSP shutters Iloilo rural bank

By: - Reporter / @bendeveraINQ
/ 05:46 PM February 26, 2017
Bangko Sentral ng Pilipinas.  INQUIRER.net FILE PHOTO

Bangko Sentral ng Pilipinas. INQUIRER.net FILE PHOTO

The Bangko Sentral ng Pilipinas has shuttered a rural bank in Iloilo due to insolvency, the second so far in 2017.

In a bulletin, state-run Philippine Deposit Insurance Corp. (PDIC) said the Monetary Board, the BSP’s highest policy-setting body, on Feb. 23 prohibited Rural Bank of Barotac Viejo (Iloilo) Inc. from doing business.

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As designated receiver, the PDIC last Feb. 24 took over the rural bank as well as its affairs, assets, branches and records.

Rural Bank of Barotac Viejo (Iloilo) had two branches: one each in Jaro, Iloilo City as well as Concepcion, Iloilo.

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The PDIC was also ordered to liquidate the bank.

“Under Section 13 of Republic Act No. 3591 (or the PDIC charter), as amended by RA 10846, a bank that has been placed under liquidation shall in no case be reopened and permitted to resume banking business,” the PDIC said.

“Furthermore, Section 12 [of the PDIC charter] expressly provides that banks closed by the Monetary Board shall no longer be rehabilitated,” the PDIC added.

“Moreover, all assets of the bank are deemed to be in custodia legis in the hands of the receiver and may not be subject to attachment, garnishment, execution, levy or any other court processes,” according to the PDIC.

In January, the BSP closed down Countryside Cooperative Rural Bank of Batangas.

Last year, the BSP shuttered 22 lenders, including 21 rural banks and thrift bank GSIS Family Bank.

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TAGS: Bangko Sentral ng Pilipinas, Banking, Business, Iloilo, Philippine Deposit Insurance Corp., Philippine news updates, Rural Bank of Barotac Viejo
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