2 more rural banks merge

MANILA, Philippines — Two more rural banks have combined forces to enhance their financial stability,
aligning with the Bangko Sentral ng Pilipinas (BSP)’s ongoing efforts to enhance risk management in the
industry.

BSP Deputy Governor Chuchi Fonacier said the merger between Bayanihan Bank Inc. and Rural Bank of
Pozorrubio Inc. took effect last Sept. 1 2023 after obtaining the necessary regulatory approvals

Bayanihan Bank would be the surviving entity, while the Pangasinan-based Rural Bank of Pozorrubio
would be the absorbed corporation.

Quezon-based Bayanihan Bank, established in May 1960, would absorb all the assets and liabilities of the
Rural Bank of Pozorrubio.

Based on its website, Bayanihan Bank, formerly known as the Rural Bank of Atimonan, was reestablished
in 2009 under the leadership of Jose Paolo Palileo after years of stagnation.

The BSP’s Monetary Board has so far ordered the closure of six problematic small banks including United
Consumers Rural Bank, Bangko Pangasinan – A Rural Bank, Rural Bank of San Juan (Southern Leyte),
Binangonan Rural Bank, Rural Bank of San Marcelino, and Rural Bank of San Agustin (Isabela).

Last year, the BSP ordered the closure of nine banks. In 2021,the number of problematic banks ordered
closed by the central bank almost tripled to 13 from five in 2020 due to the impact of the COVID-19
pandemic.

The BSP earlier raised the minimum capital requirements for rural banks to at least P50 million to
enhance the operations, capacity and competitiveness of small banks.

Under the new capital structure, the minimum capitalization of rural banks would be P50 million for
those with a head office and only up to five branches, P120 million for those with six to 10 branches, and
P200 million for small banks with more than 10 branches.

Branch-lite unit of rural banks are not included in the number of branches.

CASE STUDY 2

Philippine National Bank is one of the largest banks in the country with a wide array of competitive
banking products. PNB played a significant role in the economic development of the Philippines. As one
of the country's oldest and largest banks, PNB has been a pillar of stability and trust for generations of
Filipinos.

The major objective and function of the New Accounts Department are to Interview the persons desiring
to open accounts in financial institutions. Explain account services available to prospective customers
and assist them in preparing applications and Answer customers' questions, and explain available
services such as deposit accounts, bonds, and securities.
Case Study 3: Problem (for questions 1 to 5)

Charm Bantolino has the following deposits in ABC Bank:

  Individual account in her name: P700,000 savings deposit
 Joint account in her name and Cresilda Suyat: P500,000 time deposit
 Joint account in her name or Hanna Dacocos P800,000 demand deposit
Assume that for the joint accounts, there is equal sharing.

Question 1
What is the total insured deposit of Charm Bantolino?
A.P500,000.00
B.P750,000.00
C.P1,000,000.00
D.P1,250,000.00

Question 2
What is the total uninsured deposit of Charm Bantolino?
A. P200,000
B. P350,000
C. P500,000
D. P600,000

Question 3
What is the total insured deposit of Cresilda Suyat?
A. Zero
B. P250,000
C. P500,000
D. None of the choices

Question 4
What is the total insured deposit of Hanna Dacocos?
A. Zero
B. P250,000
C. P500,000
D. P150,000
Question 5
What is the total uninsured deposit of Hanna Dacocos?
A. P150,000
B. P250,000
C. P500,000
D. P600,000
I- Case Title:

II-Time Context:

III-Viewpoint

IV-Statement of the Problem

V-Objectives

VI-Areas of Consideration

VII-Alternative Courses of Action

VIII-Recommendation

IX-Conclusion