BSP shuts down Cabanatuan bank

The Bangko Sentral ng Pilipinas has shuttered Cabanatuan City Rural Bank Inc. for insolvency, the seventh lender shut down so far this year.

The state-run Philippine Deposit Insurance Corp. (PDIC) said the Monetary Board, the BSP’s policymaking body, on Sept. 28 stopped Cabanatuan City Rural Bank from doing business.

The PDIC was designated as receiver to take over and liquidate the rural bank based in Barangay Padre Burgos (Poblacion), Cabanatuan City.

The bank has six branches, which are located in San Jose City and in the municipalities of Bongabon, Rizal, San Antonio, Talavera and Zaragoza in Nueva Ecija province.

“The PDIC took over the bank and all its branches, assets, records and affairs on Sept. 29,” it said.

“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 reopened and permitted to resume banking business. Furthermore, Section 12 thereof expressly provides that banks closed by the Monetary Board shall no longer be rehabilitated,” it 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,” the PDIC said.

Cabanatuan City Rural Bank was the sixth rural lender closed this year, after Rural Bank of Iligan City Inc., Rural Bank of Ragay (Camarines Sur) Inc., Rural Bank of Goa (Camarines Sur) Inc., Rural Bank of Barotac Viejo (Iloilo) Inc. and Cooperative Rural Bank of Batangas.

The BSP also shuttered San Pedro, Laguna-based thrift lender World Partners Bank (A Thrift Bank) Inc. in August.