Bangko Sentral ng Pilipinas has placed a rural bank in Cebu under the custody of state-run Philippine Deposit Insurance Corp. because of unsound financial condition.
Bangko Sentral said in a circular posted on its Web site the policy-making Monetary Board ordered the closure of Lapu-Lapu Rural Bank Inc. on Jan. 28. The bank is based in Sta. Catalina Street, Poblacion II, Carcar City, Cebu province.
“Under receivership notice is hereby given that the Monetary Board, in its Resolution No. 121 dated 28 January 2016, decided to prohibit the Lapu-Lapu Rural Bank Inc. from doing business in the Philippines and to place its assets and affairs under receivership pursuant to Section 30 of Republic Act No. 7653 [The New Central Bank Act],” Bangko Sentral said.
“The Philippine Deposit Insurance Corp. has been designated as receiver of the aforementioned rural bank,” it said.
Bangko Sentral did not provide further details on the number of branches of the closed bank, its owners and total deposit liabilities.
Prior to Lapu-Lapu Rural Bank, Bangko Sentral ordered the closure of Rural Bank of Villaviciosa (Abra) Inc. on Jan. 7.
In 2015, Bangko Sentral closed 14 rural banks, matching the same number of banks closed in 2014.
The lenders that were shut down in 2014 were the Penafrancia Rural Bank of Calabanga (Camarines Sur) Inc., the La Union-based Rural Bank of Caba, the Pangasinan-based Rural Bank of Calasiao Inc., the Benguet-based Rural Bank of Buguias Inc., the Bukidnon-based Xavier-Punla Rural Bank Inc., the Batangas-based Farmers’ Rural Bank Inc., Rural Bank of Taysan (Batangas) Inc., the Surigao-based Siargao Bank (A Rural Bank), Rural Bank of Sta. Magdalena (Sorsogon), Community Rural Bank of Magsaysay (Davao del Sur) Inc.; the Surigao City-based Surigaonon Rural Banking Corp.; Rural Bank of Labrador (Pangasinan); Rural Bank of Magsingal (Ilocos Sur) Inc.; and the Alfonso, Cavite-based Community Bank (Rural Bank of Alfonso Inc.).
Meanwhile, the 14 rural banks closed in 2014 were the Leyte-based Rural Bank of Burauen Inc., the Batangas-based Synergy Rural Bank, Cooperative Bank of Tarlac Inc., the Bulacan-based Fil-Agro Rural Bank, Rural Bank of Lobo Inc. in Batangas, Rural Bank of Padre Burgos in Southern Leyte, the Cavite-based Banco Carmona Inc. (A Rural Bank), Rural Bank of Oroquieta (Misamis Occidental) Inc., Asian Consumers Bank (A Rural Bank) in Basista, Pangasinan; Gulf Bank (Rural Bank of Lingayen Inc.), Rural Bank of Pres. M.A. Roxas Inc. in Zamboanga del Norte; Rural Bank of Montevista in Davao del Norte, Rural Bank of Reina Mercedes in Isabela, and the Cavite-based Silangan Savings and Loan Bank.