The Monetary Board, the policy-making body of the Bangko Sentral ng Pilipinas, closed a financially-ailing rural bank based in Lanao del Sur, the first lender shut down this year.
In a resolution dated Jan. 24, 2019, the board closed and prohibited Bagong Bangko Rural ng Malabang (Lanao del Sur) Inc. from doing business in the Philippines.
State-run Philippine Deposit Insurance Corp., as a receiver, was ordered to proceed with the takeover and liquidation of the bank.
The board last year closed 12 small banks because of their unsound financial condition. These are San Francisco Del Monte Rural Bank. Inc. in Quezon City, Lanao del Norte-based Rural Bank of Maigo, Pangasinan-based Malasiqui Progressive Savings and Loan Bank Inc., Rural Bank of Luna (Apayao) Inc., Rural Bank of Pagbilao Inc., Rural Bank of Sta. Elena (Camarines Norte) and Batangas-based Tiaong Rural Bank.
Also closed were Iloilo-based Bangko Buena Consolidated Inc., Batangas-based Women’s Rural Bank Inc., Rural Bank of Initao (Misamis Oriental) Inc., Empire Rural Bank Inc. in Lipa City, Batangas and Rural Bank of Loreto (Surigao del Norte) Inc.