BSP Places Negros Rural Bank Under Receivership

The central bank has placed the New Rural Bank of Binalbagan (Negros Occidental) Inc. under receivership of the Philippine Deposit Insurance Corp. (PDIC). Under Monetary Board (MB) Resolution No. 1002.A dated June 9,2016, the PDIC was named receiver, effectively taking over the bank on June 10. The office address of the bank was registered at National Highway, Barangay Progreso, Binalbagan, Negros Occidental. This comes after the MB decided to prohibit the rural bank from doing business and to place its assets and affairs under receivership. "The Philippine Deposit Insurance Corporation has been designated as Receiver of the aforementioned rural bank," Bangko Sentral ng Pilipinas (BSP) Deputy Governor Nestor A. Espenilla Jr. said in a circular letter posted on the central bank's official website. Given the development, the law states that the PDIC will determine within 90 days whether the bank may be rehabilitated or permitted to resume business subject to the approval of the MB. Read more.