The Monetary Board of the Bangko Sentral ng Pilipinas closed another financially-ailing rural bank based in Negros Oriental, the 12th lender closed since the start of the year.
The board prohibited Rural Bank of Siaton (Siaton, Negros Oriental) Inc. from doing business in the Philippines. The bank was placed under the receivership of Philippine Deposit Insurance Corp. The state-run agency took over the bank the following day.
Rural Bank of Siaton is a single-unit rural bank at Km. 50, National Highway, Poblacion Siaton, Negros Oriental.
Latest available records show that as of March 31, 2016, Rural Bank of Siaton had 1,301 accounts with total deposit liabilities of P46.6 million. Total insured deposits amounted to P40.7 million or 87.3 percent of total deposits.
Earlier, the board closed 11 rural banks due to their unsound financial condition. These included New Rural Bank of Binalbagan (Negros Occidental) lnc., Rural Bank of Amadeo (Cavite) Inc., Government Service Insurance System-owned GSIS Family Bank, and Surigao City Evergreen Rural Bank Inc.