BSP padlocks Bukidnon bank

MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) has ordered the closure of another rural bank based in Bukidnon and placed all its assets under the supervision of the state-run Philippine Deposit Insurance Corp. (PDIC).

In a circular, BSP Deputy Governor Nestor Espenilla Jr. has designated PDIC as the receiver of the shuttered rural bank as mandated under Republic Act 7653 or the New Central Bank Act.

This is the 10th bank order closed by the BSP this year. It has two branches and is based in Poblacion, Pangantucan in Bukidnon.

Xavier-Punla Rural Bank is a private bank controlled by microfinance oriented non-government organizations and private individuals.

Banks ordered closed by the central bank and placed under the supervision of PDIC this year include Community Bank (Rural Bank of San Alfonso) Inc., Community Rural Bank of Magsaysay (Davao del Sur) Inc., Rural Bank of Labrador (Pangasinan) Inc., Rural Bank of Magsingal (Ilocos Sur) Inc., Rural Bank of Pres. Roxas (North Cotabato) Inc., Rural Bank of Sta. Magdalena (Sorsogon) Inc., Siargao Bank (A Rural Bank) Inc., Surigaonon Rural Banking Corp., and Farmer’s Rural Bank Inc. in Batangas.

PDIC is tasked to gather, verify, and validate all bank records and valid deposits of closed banks. Valid deposit accounts are paid up to the maximum deposit insurance coverage of P500,000.

Depositors with valid deposit accounts with balances of P100,000 and below will be eligible for early payment and need not file deposit insurance claims.

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