The Monetary Board, the policy-making body of Bangko Sentral ng Pilipinas, has placed the Rural Bank of Bayawan (Negros Oriental) Inc. under the custody of Philippine Deposit Insurance Corp. due to unsound financial condition.
Rural Bank of Bayawan became the third rural lender ordered closed by regulators this year.
The Monetary Board put the ailing bank under the receivership of state-run PDIC through a resolution dated Feb. 24, 2016. The board decided to prohibit the bank from doing business and placed its assets and affairs under receivership, pursuant to Section 30 of Republic Act 7653 or the New Central Bank Act.
Available data on its Web site showed that Rural Bank of Bayawan was a single-unit bank located at 807, H. Bollos Sr. St., Bayawan City, Negros Oriental.
The Monetary Board earlier closed down Rural Bank of Villaviciosa (Abra) Inc. on Jan. 7 and the Cebu-based Lapu-Lapu Rural Bank Inc. on Jan. 28.
Bangko Sentral shut down 14 rural banks in 2015, matching the same number of banks closed in 2014.
Banks that ceased operations last year included Penafrancia Rural Bank of Calabanga (Camarines Sur) Inc., La Union-based Rural Bank of Caba, Pangasinan-based Rural Bank of Calasiao Inc., Benguet-based Rural Bank of Buguias Inc., Bukidnon-based Xavier-Punla Rural Bank Inc., Batangas-based Farmers’ Rural Bank Inc., Rural Bank of Taysan (Batangas) Inc., Surigao-based Siargao Bank (A Rural Bank), Rural Bank of Sta. Magdalena (Sorsogon), Community Rural Bank of Magsaysay (Davao del Sur) Inc., Surigao City-based Surigaonon Rural Banking Corp., Rural Bank of Labrador (Pangasinan), Rural Bank of Magsingal (Ilocos Sur) Inc. and Alfonso, Cavite-based Community Bank (Rural Bank of Alfonso Inc.).
Bangko Sentral Deputy Governor Nestor Espenilla Jr. earlier said the Monetary Board was studying the possibility of unifying the Consolidation Program for Rural Banks and the Strengthening Program for Rural Banks to help smaller banks in distress conditions.
