The Bangko Sentral ng Pilipinas today placed Rural Bank of Sta. Rita and Rural Bank of Bacolor which unilaterally declared bank holiday under receivership of the Philippine Deposit Insurance Corporation.
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 Bangko Sentral said that with the exception of these 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. 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.
The consolidated capital adequacy ratio or CAR of the present 20 Pampanga-based rural banks is 19.9%, nearly double the 10% minimum required by the Bangko Sentral and more than twice the international standard of 8%. 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.