BSP places 2 more rural banks under receivership

The Bangko Sentral ng Pilipinas (BSP) has placed under receivership of the Philippine Deposit Insurance Corp. (PDIC) two more banks that have declared bank holiday.

The two banks are the Dynamic Bank (RB of Calatagan) which is based in Batangas and San Pablo City Development Bank which is based in Laguna.

This brings to nine the total number of rural banks placed under BSP receivership since Dec. 9, the BSP said.

Monetary authorities stressed that the closure of the banks have nothing to do with the global financial turmoil.

“The Bangko Sentral has been monitoring these banks well before the global financial turmoil because of potentially unsafe and unsound banking practices,” the BSP said.

Furthermore, the central bank reiterates that these banks represent a tiny fraction of the banking system and that the Philippine banking system remains stable, highly-capitalized and highly liquid.

The BSP’s move to place these banks under receivership enables the state deposit insurer to take over the bank’s assets to protect the interests of depositors.