MANILA, Philippines – A total of 14 banks in the Philippines have been shut down in the first half of 2016, as the Bangko Sentral ng Pilipinas (BSP) steps up its campaign against weak players.
The latest to be closed is the Rural Bank of Alabat (Quezon), which has been prohibited from doing business in the country and placed under the supervision of the state-run Philippine Deposit Insurance Corporation (PDIC).
The Rural Bank of Alabat is a 3-unit rural bank, with its head office located in Alabat, Quezon. (READ: Fewer Philippine banks in 2015)
Latest available records showed that the closed rural bank had 15,359 accounts, with total deposit liabilities of P121 million.
Total insured deposits under the Rural Bank of Alabat amounted to P111.5 million, involving 99.8% of total deposit accounts.
The Rural Bank of Alabat is the 14th bank closed by the BSP this year, matching the number of banks shuttered by the bank regulator in 2015.
Closure of more banks
The country’s central bank said it expects the closure of more banks.
The Rural Bank of Alabat is the 3rd bank to be ordered closed by the BSP following the effectivity of Republic Act No. 10846 that amended the PDIC Charter.
Banks ordered closed by the BSP so far include:
- New Rural Bank of Binalbagan (Negros Occidental) Incorporated
- GSIS Family Bank
- Rural Bank of Amadeo (Cavite) Incorporated
- Surigao City Evergreen Rural Bank Incorporated
- Rural Bank of Malinao (Aklan) Incorporated
- Rural Bank of Bayawan
- Lapu-Lapu Rural Bank Incorporated
- Rural Bank of Villaviciosa (Abra) Incorporated
- Koronadal Rural Bank Incorporated
- Rural Bank of Panay Incorporated
- Rural Bank of Basay (Negros Oriental) Incorporated
- Rural Bank of Siaton (Siaton, Negros Oriental) Incorporated
- Rural Bank of Cabadbaran (Agusan) Incorporated
BSP data showed the number of banks operating in the Philippines declined to 622 in end-March this year, from 646 in end-March last year.
But the number of big banks or universal and commercial banks went up to 41 from 36 with the entry of more foreign players after former president Benigno Aquino III signed Republic Act No. 10641 in July last year.
The number of thrift banks reached 66 in end-March this year from 69 in end-March last year, while the number of rural and cooperative banks decreased to 515 from 541. (READ: Bank of Tokyo Mitsubishi acquires 20% stake in Security Bank)
The BSP is consolidating the Strengthening Program for Rural Banks (SPRB) Plus and the Consolidated Program for Rural Banks (CPRB) to entice mergers among smaller banks with the entry of stronger foreign banks into the country. – Rappler.com