The Bangko Sentral ng Pilipinas has placed another financially troubled rural bank under receivership.
The New Rural Bank of Tagkawayan Inc. (NRBTI) was ordered closed Friday by the Monetary Board of the central bank for failing to meet regulatory standards, said the Philippine Deposit Insurance Corp. (PDIC), which serves as the receiver of failed banks.
NRBTI, which is based in Quezon, had seven branches—two in Sariaya, and a branch each in Calauag, Candelaria and Lucena in Quezon. It also had offices in San Juan and Rosario in Batangas.
Citing records dated December 31, PDIC said in a statement that the bank carried P363.44 million in deposits, covering 14,099 accounts.
PDIC assured depositors of NRBTI that payment of deposit insurance would be made upon validation of deposit accounts. Payment of deposit insurance may start by the end of June.
As the receiver, PDIC takes over all of the bank’s liabilities and its remaining assets.
Deposit insurance for all small deposits, or those that are worth P10,000 or less, will be automatically paid. Those who maintain small deposits need not file a claim with PDIC.
Also, deposits worth at least P500,000 are covered by deposit insurance, according to the charter of PDIC.
The BSP and PDIC have expanded a program meant to encourage financially healthy banks to acquire troubled rural banks in the wake of closures.
Under the Strengthening Program for Rural Banks (SPRB), strong rural banks that acquire weak rural banks may receive loans and relief from some regulations.
The other day, the BSP announced that the program had been enhanced and renamed SPRB Plus. Under the new guidelines, the incentives offered to rural banks are now also being offered to thrift and commercial banks.
NRBTI is the fifth rural bank placed under receivership this year.
Earlier, the BSP ordered the closure of the following institutions: First Provincial Bank in Tarlac City, Rural Bank of Gigaquit in Surigao del Norte, Rural Bank of Luna in La Union, and Rural Bank of Nasugbu in Batangas.
In 2011, there were 25 rural banks that were ordered closed by the central bank. Michelle V. Remo