MANILA, Philippines — The Bangko Sentral ng Pilipinas has ordered the closure of Batangas-based Tiaong Rural Bank Inc., bringing to six the number of problematic banks shuttered so far this year.
The Monetary Board has issued a resolution prohibiting the rural bank from doing business pursuant to Section 30 of RA 7653 or The New Central Bank Act.
The BSP also designated state-run Philippine Deposit Insurance Corp. (PDIC) as receiver with a directive to proceed with the takeover and liquidation of the problematic rural bank in accordance with RA 3591 or the PDIC Charter.
Tiaong Rural Bank is an eight-unit rural bank with head office located at 2497, Maharlika Highway, Barangay San Antonio, Santo Tomas, Batangas. Its branches are located in Batangas City and Lipa City in Batangas; Imus, Cavite; Calamba, San Pablo City and Sta. Rosa City in Laguna; and in Tiaong, Quezon.
Latest available records show that as of June 30, Tiaong Rural Bank had 18,471 deposit accounts with total deposit liabilities of P891.7 million. Total insured deposits amounted to P794.2 million equivalent to 89.1 percent of total deposits.
PDIC assured depositors that all valid deposits and claims would be paid up to the maximum deposit insurance coverage of P500,000. Individual depositors with valid deposit accounts with balances of P100,000 and below are eligible for early payment and need not file deposit insurance claims, provided they have no outstanding obligations.
The BSP has so far ordered the closure of six problematic banks this year. Aside from Tiaong Rural Bank, other banks shuttered include Iloilo-based Bangko Buena Consolidated Inc., Batangas-based Women’s Rural Bank Inc., Rural Bank of Initao (Misamis Oriental) Inc., Empire Rural Bank Inc. in Lipa City, Batangas as well as the Rural Bank of Loreto (Surigao del Norte) Inc.