Bangko Sentral closes rural bank in Pangasinan

PANGASINAN, Philippines – The number of banks ordered closed by the Bangko Sentral ng Pilipinas (BSP) has reached a dozen this year after it closed a rural bank in Pangasinan and placed it under the supervision of the Philippine Deposit Insurance Corporation (PDIC).

Through Monetary Board Resolution 1877 issued on Sunday, November 17, the BSP shut down the operations of the Rural Bank of Calasiao Incorporated and transferred it under the PDIC to ensure that insured deposit claims are paid out.

The Pangasinan-based rural bank had 3,019 accounts with total deposits of P102 million. Of the amount, only P85.5 million or 83.9% are insured.

PDIC took over the the bank on Wednesday, November 18, and is now verifying all its records.

All valid deposits shall be paid a maximum of P500,000 for the deposit insurance coverage, PDIC said.

Those who have balances of P100,000 and below can receive early payment without having to file deposit insurance claims. Payments will be mailed by the end of November to addresses written on depositors’ bank records .  

The others who are required to submit deposit insurance claims will receive payments starting mid-December.   

To verify eligibility for early payments and other concerns, account owners are invited to PDIC’s depositors-borrowers forum on November 26.

12 banks closed in 2015

Rural Bank of Calasio’s major shareholders include Maximo Joaquin Abesamis, Frederick Enerva Abesamis, Magnolito Joves Acosta, Remedios Cruz Zulueta, Godofredo Joaquin Abesamis, Guadalupe Abesamis Arambulo, Editha Enerva Abesamis, Angelita Jovellanos Torres, Florencio Latonio Gabrillo, and Arturo Prado Doria. 

It is the 12th bank that the central bank has shut down this year. Others were the:

• Community Bank (Rural Bank of San Alfonso) Incorporated
• Community Rural Bank of Magsaysay (Davao del Sur) Incorporated
• Rural Bank of Labrador (Pangasinan) Incorporated
• Rural Bank of Magsingal (Ilocos Sur) Incorporated
• Rural Bank of Pres. Roxas (North Cotabato) Incorporated
• Rural Bank of Sta. Magdalena (Sorsogon) Incorporated
• Siargao Bank (A Rural Bank) Incorporated (Surigao del Sur)
• Surigaonon Rural Banking Corp. (Surigao del Norte) 
• Farmer’s Rural Bank Incorporated (Batangas)
• Xavier-Punla Rural Bank Incorporated (Bukidnon)
• Rural Bank of Buguias (Benguet)

Strengthening rural banks

To strengthen the rural banking industry, the BSP, PDIC and the Land Bank of the Philippines (LBP) launched the Consolidated Program for Rural Banks (CPRB) in July.

CPRB aims to encourage mergers and consolidations among the rural banks. This is to enable them to “improve financial strength, enhance viability, strengthen management and governance and expand market reach,” BSP previously explained.

The Countryside Financial Institutions Enhancement Program has allocated P25 million to implement the program. CFIEP is mandated to ensure the sustainability of financial institutions in the rural areas. 

CPRB is different from the Strengthening Program for Rural Banks (SPRB) Plus, which intends to rehabilitate rural banks and minimize closures.

Including thrift banks, universal and commercial banks as strategic 3rd party investors, SPRB Plus is an enhanced version of the original SPRB launched in 2010 exclusively for rural banks. 

Last December, BSP and PDIC extended the implementation of SPRB Plus up until the end of December this year. 

BSP also extended earlier this month its Strengthening Program for Cooperative Banks (SPCB) Plus for another year. SPCB helps save cooperative banks by opening them parties interested for acquisition or consolidation. – Rappler.com