BSP closes Central Visayas’ first cooperative bank

FILE PHOTO: A motorcycle pases a building of the Bangko Sentral ng Pilipinas (Central Bank of the Philippines) in Manila, Philippines April 28, 2016. REUTERS/Romeo Ranoco/File Photo

TAGBILARAN CITY — The Bangko Sentral ng Pilipinas (BSP) has ordered the closure of the first cooperative bank in Central Visayas.

The Monetary Board of BSP issued a resolution on July 18 prohibiting the Cooperative Bank of Bohol (CBB) in Tagbilaran from doing business in the country pursuant to Section 30 of Republic Act 7653 or The New Central Bank Act.

The reason behind the bank’s closure was not stated.

The Philippine Deposit Insurance Corp. (PDIC) was ordered to take over the CBB and act as a receiver with a directive to proceed with the takeover and liquidation of the rural bank.

The CBB also has branches in Panglao, Candijay, and Inabanga towns.

PDIC took over the closed bank, its assets, records, and affairs last July 19.

“Depositors, borrowers, and other clients/stakeholders of the bank will be informed accordingly of the requirements and procedures for filing claims for deposit insurance and claims against the assets of the closed bank, and settlement of obligations in the PDIC website and Official Facebook account,” the state-run deposit insurer said.

Formerly named Cooperative Rural Bank of Bohol Inc., the CBB was organized by 320 Samahang Nayons from towns in Bohol province.

The CBB was registered with the Bureau of Cooperatives Development on April 24, 1980, confirmed by CDA in 1991, and re-registered in 2010 under Republic Act 9520.

It started its operation on Nov. 3, 1980 under Central Bank’s Authority to operate No. 1028. Its initial capital was P840,000.00.