The Monetary Board, the policy-making body of the Bangko Sentral ng Pilipinas, has placed the Cooperative Bank of Tarlac Inc. under the custody of Philippine Deposit Insurance Corp. because of the bank’s unsound financial condition.
Cooperative Bank of Tarlac became the 12th bank closed by the regulator this year.
The Monetary Board issued a resolution dated Oct. 24, prohibiting the cooperative bank from doing business and placing its assets and affairs under the receivership of the state-run PDIC, pursuant to Section 30 of Republic Act 7653 or The New Central Bank Act.
PDIC took over the bank on Oct. 27.
Cooperative Bank of Tarlac is a two-unit rural bank with head office located in Tarlac City. It has a branch in Camiling while its three info offices are located in Capas, Concepcion and Paniqui.
The bank had 3,831 accounts with total deposit liabilities of P225.76 million as of June 30.
PDIC said a total of 3,806 deposit accounts or 99.35 percent of the accounts had balances of P500,000 or less and were fully covered by deposit insurance.
Estimated total insured deposits amounted to P215.8 million or 95.59 percent of the total deposits.
Latest bank information data showed the bank was owned by the Cooperative Banks Federation of the Philippines (15.25 percent), Land Bank of the Philippines (12.15 percent), Kabutil Mega Credit Corp. (9.75 percent), Cooperative Development Authority (7.16 percent), and CBTI Employees (2.89 percent).
The Bangko Sentral earlier ordered the closure of 11 small banks also because of unhealthy financial status.
These were the Bulacan-based Fil-Agro Rural Bank, Rural Bank of Lobo Inc. in Batangas, Rural Bank of Padre Burgos in Southern Leyte, the Cavite-based Banco Carmona Inc. ( A Rural Bank), Rural Bank of Oroquieta (Misamis Occidental) Inc., Asian Consumers Bank (A Rural Bank) in Basista, Pangasinan; Gulf Bank (Rural Bank of Lingayen Inc.), Rural Bank of Pres. M.A. Roxas Inc. in Zamboanga del Norte; Rural Bank of Montevista in Davao del Norte, Rural Bank of Reina Mercedes in Isabela, and the Cavite-based Silangan Savings and Loan Bank.