Bangko Sentral ng Pilipinas padlocks Palawan thrift bank

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has ordered the closure of Puerto Princesa-based The Palawan Bank (Palawan Development Bank) Inc. which has the largest private banking network in the province.

Lyn Javier, sector in charge of the BSP’s financial supervision sector, issued Circular Letter 2019 – 033 informing BSP supervised financial institutions about the closure of Palawan Development Bank.

Javier said the Monetary Board issued Resolution 660 on May 2 prohibiting Palawan Development Bank from doing business in the Philippines pursuant to Section 30 of Republic Act 7653 or The New Central Bank Act.

Javier said the Philippine Deposit Insurance Corp. has been designated as receiver with a directive to proceed with the takeover and liquidation of the thrift bank.

The thrift bank, established in Puerto Princesa City in 1984, claims to have the widest banking coverage in the province with over 10 branches in Palawan and Cebu.

It provides a range of community banking services to both individuals and businesses in the area of its branches: from checking and savings accounts to housing loans, business loans, asset financing services, remittances, and payroll services.

This is the third bank ordered closed by the regulator as it continues to weed the industry of weak and problematic players. The BSP earlier closed down the Rural Bank of Mabitac (Laguna) Inc. and Bagong Bangko Rural ng Malabang (Lanao del Sur) Inc.

Last year, the regulator closed down 12 problematic banks.