The Monetary Board, the policy-making body of the Bangko Sentral ng Pilipinas, said it shut down a savings bank in Pangasinan province and a rural bank in Apayao province because of their unsound financial condition.
The closures put to 10 the number of savings and rural banks that were placed under liquidation this year.
The Bangko Sentral said it prohibited Malasiqui Progressive Savings and Loan Bank Inc. from doing business in the Philippines.
Under Resolution No. 1331.B dated Aug. 16, 2018, the Monetary Board directed state-run Philippine Deposit Insurance Corp. to proceed with the takeover and liquidation of Malasiqui Progressive Savings. PDIC took over the bank on Aug. 17, 2018.
Malasiqui Progressive Savings is a single-unit thrift bank located at Quezon Blvd. Extension in Barangay Poblacion, Malasiqui, Pangasinan.
Latest available records showed that as of June 30, Malasiqui Progressive Savings had 1,064 deposit accounts with combined deposits of P73.5 million. Total insured deposits amounted to P67.5 million, or 91.8 percent of total deposits.
The Monetary Board on the same day also closed Rural Bank of Luna (Apayao) Inc. PDIC took over the bank on Aug. 17.
Rural Bank of Luna is a five-unit rural bank with head office located in San Isidro Norte, Luna, Apayao. Its four branches are in Abulug, Alcala, Allacapan and Buguey.
Records showed that as of June 30, Rural Bank of Luna had 10,090 deposit accounts with combined deposits of P213.13 million. Insured deposits amounted to P185.06 million, or 86.8 percent of total deposits.
The Monetary Board closed seven small banks in 2017. These included Cabanatuan City Rural Bank Inc., the Laguna-based World Partners Bank (A Thrift Bank) Inc., Rural Bank of Iligan City Inc., Rural Bank of Ragay (Camarines Sur), Rural Bank of Goa (Camarines Sur), Rural Bank of Barotac Viejo (Iloilo) and Countryside Cooperative Rural Bank of Batangas.
The Bangko Sentral closed 22 banks in 2016. Under the law, a bank that was placed under liquidation would not be allowed to reopen.
The Bangko Sentral ng Pilipinas, Land Bank of the Philippines and PDIC earlier approved the relaunch of the Consolidation Program for Rural Banks, an incentive program designed to encourage mergers and consolidation among rural banks.
The program was set up to strengthen the rural banking industry, in recognition of the major role that rural banks play in providing essential financial services to communities, especially in their specialized or niche markets.
The Bangko Sentral said the relaunched CPRB would be available for two years, from Oct. 26, 2017 to Oct. 26, 2019.