Rural Bank Shut Down by The Bangko Sentral
The closure of the GSIS Family Bank during the later part of the first quarter of the year may have been a hot topic within the business circle, but it’s not the end in the Bangko Sentral ‘s commitment to action and regulation. A rural bank in the province of Cavite, the Rural Bank of Amadeo Inc. and its branch located in the city in the same province was turned over to the Philippine Deposit Insurance Corporation on the 13th of May. The bank was managed by the Andamo-Villanueve Estate Inc. and family members of the Andamo’s. The headquarters was situated in Amadeo, Cavite and has a single branch located in the town of Magallanes which is also in the same province.
Every depositor in the bank is to receive an insurance coverage with a maximum of P500, 000 according to the PDIC. The Rural Bank of Amadeo, however won’t be the last of the banks foreclosing under the watchful eye of the BSP. The PDIC actually received the following banks from the Bangko Sentral ng Pilipinas namely Lapu-Lapu Rural Bank Inc., Rural Bank of Villaviciosa (Abra) Inc., Rural Bank of Bayawan (Negros Oriental) Inc., Rural Bank of Basay (Negros Oriental) Inc., Surigao City Evergreen Rural Bank Inc., Rural Bank of Malinao (Aklan) Inc., Rural Bank of Panay Inc. and the Koronadal Rural Bank Inc.
The Rural Bank of Amadeo was set to be the ninth bank to be shut by the state-run Bangko Sentral this year. Up to date, a total of ten banks have been turned including the thrift bank GSIS Family Bank. BSP Deputy Governor Nestor Espenilla Jr. stated
“The GSIS has been trying to sell GSIS Family Bank to qualified investors who can rehabilitate it. Unfortunately, that couldn’t move forward because of internal legal disputes. In the end, the Monetary Board determined the bank can no longer continue doing business with safety to its depositors and creditors,”
Negotiations regarding the sale dragged due to the controlling share in GSIS Family Bank which failed thrice last year as there was a complete struggle in securing the remaining share held by the former Cavite politician Renato Dragon.
