PDIC to take over 2 rural banks

CITY OF SAN FERNANDO — The Bangko Sentral ng Pilipinas (BSP) on Thursday placed Rural Bank of Sta. Rita (RBSR) and Rural Bank of Bacolor (RBBR) under the receivership of the Philippine Deposit Insurance Corporation (PDIC).

Receivership “is a form of bankruptcy in which a company can avoid liquidation by reorganizing with the help of court-appointed trustee.”

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The move came as an effect of the self-imposed bank holiday of the two banks before Christmas last year that sent worried clients calling on the BSP to intervene.

“The receivership enables the PDIC to take over the banks’ assets to protect the interest of bank depositors and to start processing deposit insurance claims,” the BSP said in a statement.

The BSP assured that despite the condition of the two banks “the rural banking sector in Pampanga remains strong and healthy.”

“There are now 20 remaining Pampanga-based rural banks with a combined asset base of more than P8 billion, deposit base of more than P6 billion, and close to P1.5 billion in capital accounts,” the BSP revealed.

As a whole, these rural banks have consistently recorded healthy double-digit growth rates in deposits received and loans granted between December 2007 and September 2008 according to the BSP.

The BSP explained that the capital adequacy ratio (CAR) of the present 20 Pampanga-based rural banks is 19.9 percent, nearly double the 10-percent minimum required by the BSP. The said figure is also more than twice the international standard of eight percent. CAR or the ratio of a bank’s capital to its risk reflects a bank’s ability to absorb losses.

“The Bangko Sentral advises the public to avoid making sweeping judgment on the condition of individual banks or to pass on baseless rumors,” the BSP stressed.

Depositors of RSBR and RBBR may call the PDIC’s Deposit Assistance Group at 841-4630 for their deposit-insurance claims. (IOF)


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