• Monetary Board closes rural bank in Cavite

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    The Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) has ordered the closure of the single-unit Silangan Savings and Loan Bank Inc. located in Silang, Cavite.

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    In a resolution dated January 9 and signed by BSP Deputy Governor Nestor Espenilla Jr., the MB has placed the said rural bank under the receivership of the state insurer Philippine Deposit Insurance Corp. (PDIC). The board stated that it has “decided to prohibit the Silangan Savings and Loan Bank Inc. from doing business in the Philippines and to place its assets and affairs under receivership” pursuant to The New Central Bank Act.

    Silangan Savings and Loan Bank Inc. is the first rural bank that was placed under the PDIC this year. Located along J.P. Rizal Street, Silang, Cavite, the rural had 1,367 accounts with total deposit liabilities of P72.49 million.

    A total of 1,362 deposit accounts, or 99.63 percent of the accounts have balances of P500,000 or less and are fully covered by deposit insurance. Total insured deposits amounted to P72.08 million, or 99.43 percent of total deposits. PDIC said that upon takeover, all bank records shall be gathered, verified and validated. The state deposit insurer assured depositors that all valid deposits shall be paid up to the maximum deposit insurance coverage of P500,000.

    In 2013, the Monetary Board ordered a total of 18 banks closed and placed under the receivership of PDIC. This was lower than the 24 banks closed in 2012, where 120,000 depositors lost about P19.5 billion.

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