ANOTHER RURAL bank has been placed under receivership after mismanagement led to insolvency.
In a memorandum dated May 14 but publicized only yesterday, the Bangko Sentral ng Pilipinas (BSP) said it had placed the Rural Bank of Sapang Dalaga in Misamis Occidental under the receivership of the state deposit insurer.
"Notice is hereby given that the Monetary Board, in its Resolution No. 710 dated 14 May 2009 decided to prohibit the Rural Bank of Sapang Dalaga (Misamis Occidental), Inc. from doing business in the Philippines and to place its assets and affairs under receivership," Memorandum NO. M-2009-014 read.
The BSP said the bank had long had financial and management problems, which eventually led to its declaration of a "bank holiday." A holiday essentially means withdrawals by depositors can no longer be served.
"Mismanagement and poor oversight ultimately led to insolvency problems and the bank’s eventual closure," BSP Deputy Governor Nestor A. Espenilla, Jr. said in a text message yesterday.
The rural bank’s officials were not immediately available for comment.
The Rural Bank of Sapang Dalaga was the 11th bank closed by the BSP this year.
BSP officials have said the closures were just part of its "house cleaning," to rid the otherwise healthy rural banking system of weak banks. — P. L. G. Montecillo
http://www.bworldonline.com/BW052809/content.php?src=1&id=024
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