BSP shuts down Abra rural bank
>> Sunday, January 24, 2016
VILLAVICIOSA,
Abra -- The Bangko Sentral ng Pilipinas
(BSP) has ordered another rural bank closed barely a week into 2016, as it
encouraged small banks to consolidate and strengthen the country’s banking
system.
The BSP’s Monetary Board issued Resolution
No. 4 on Jan. 7, shutting down the Rural Bank of Villaviciosa Inc. in Abra, as
provided under Republic Act 7653 or the New Central Bank Act.
The bank regulator prohibited the rural bank
from doing business in the country, and ordered its assets and operation placed
under the supervision of the state-run Philippine Deposit Insurance Corp.
(PDIC).
The Abra rural bank was the first to be
closed by the BSP this year.
Last year, 14 rural banks were closed and
placed under the supervision of the PDIC.
BSP Governor AmandoTetangco Jr. earlier said
the bank regulator would continue to offer incentives in order to encourage
weaker banks to consolidate, merge, and beef up their capital base.
“In this manner, the banking system will be
strengthened and bank closures will be minimized. On the issue of bank
closures, it is important to consider this in the context of protecting the
public and enhancing the service,” Tetangco said.
The BSP together with the PDIC and Land Bank
of the Philippines have issued the guidelines for the consolidation of rural
banks.
Data from the central bank showed the number
of big and small banks operating in the country reached 635 in September last
year, or lower by 17 than the 652 recorded in September 2014.
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