PDIC takes over 22 banks in first 8 months

MANILA, Philippines – The number of banks taken over by state-run Philippine Deposit Insurance Corp. (PDIC) went up 29 percent in the first eight months of the year as more problematic banks were ordered closed by the Bangko Sentral ng Pilipinas (BSP).

Data showed that the number of banks taken over by PDIC from January to August this year reached 22, compared to 17 in the same period last year.

Just last week, PDIC took over First Reliance Bank [Rural Bank of Indang (Cavite)] after it was ordered closed and placed under the receivership of PDIC.

First Reliance Bank is a two-unit rural bank with its head office located at San Gregorio St., Indang, Cavite and its lone branch at the Indang Public Market.

Latest available records showed that First Reliance Bank had estimated total deposit liabilities of P152.6 million in 5,813 accounts as of June 30, 2011.

PDIC said holders of deposit accounts with balances of P10,000 and below who have no outstanding loans and whose addresses are current and complete in the bank records are not required to file deposit insurance claims. Depositors with balances of P10,000 and below who have changed addresses without updating their bank records as well as those with account balances of more than P10,000 are required to file claims.

PDIC is tasked to gather, verify and validate all bank records and administer and preserve assets of banks ordered closed by the BSP for the benefit of all creditors.

Other banks taken over by PDIC this year include Rural Bank of Tarlac Inc.; Bank of Calape Savings and Mortgage Bank; Rural Bank of Garcia-Hernandez (Bohol) Inc.; Rural Bank of Matanao (Davao del Sur) Inc.; Express Savings Bank Inc.; Mambajao Community Rural Bank Inc.; Rural Bank of Pres. Roxas (North Cotabato) Inc.; Rural Bank of Nabas (Aklan) Inc.; Rural Bank of Tagudin (Ilocos Sur) Inc.; Rural Bank of Tampakan (South Cotabato Inc.; and Rural Bank of Agno (Pangasinan) Inc.

PDIC also took over Banco Filipino Savings and Mortgage Bank; Growers Rural Bank Inc.; Rural Bank of Manjuyod (Negros Oriental) Inc.; GMA Rural Bank of Cavite Inc.; Rural Bank of Bingawan (Iloilo) Inc.; Rural Bank of Mapandan (Pangasinan) Inc.; Rural Bank of Norzagaray (Bulacan) Inc.; Rural Bank of Zapote (Las Piñas City) Inc.; Ibalon Rural Bank (Tabaco, Albay) Inc.; and Rural Bank of Baler (Aurora) Inc.

Latest data from the BSP showed that the total number of banks operating in the Philippines was reduced by 33 to 746 in the first quarter of the year from 779 in the same quarter last year, as the bank regulator stepped up its campaign against problematic banks while major players in the banking industry continued to consolidate.

Data showed that the number of universal and commercial banks was steady at 38 while the number of thrift banks was also unchanged at 73. However, the number of rural banks decreased to 635 in the first three months of the year compared to 667 in the same period last year and 647 as of end-December due primarily to the closure of weaker banks.

The BSP reported that the number of branches of universal and commercial banks, thrift banks and rural banks increased by 240 to 8,124 in the first quarter of the year from 7,884 in the same period in last year. –Lawrence Agcaoili (The Philippine Star)