The Cooperative Bank of Bohol (CBB) has been ordered to cease operations by the Monetary Board of the Bangko Sentral ng Pilipinas (BSP), sending shockwaves in the local banking sector.
According to a notice issued by the Philippine Deposit Insurance Corporation (PDIC) on July 19, 2024, the Monetary Board prohibited CBB from conducting business in the Philippines.
The PDIC, designated as the receiver, has been directed to proceed with the takeover and liquidation of the bank.
The closure order, based on Monetary Board Resolution No. 818 B dated July 18, 2024, was implemented under Section 30 of Republic Act No. 7653, also known as the New Central Bank Act.
PDIC officially assumed control of CBB, including all its branches, assets, records, and affairs, on July 19.
CBB, with its principal office located at 0126 CPG East Ave., Brgy. Poblacion I, Tagbilaran City, Bohol, had been serving local communities before this sudden closure.
The bank’s shuttering raises concerns about its impact on local businesses and individual account holders in the province.
PDIC assures that depositors, borrowers, and other stakeholders will be informed about the requirements and procedures for filing claims.
Information regarding claims against the bank’s assets and settlement of obligations will be made available on the PDIC website and official Facebook account.
For those affected by the bank’s closure, PDIC has established channels for inquiries and assistance.
All communications related to CBB should be directed to the Public Assistance Department of the PDIC, located at PDIC Chino Bldg., 2228 Chino Roces Avenue, Makati City 1231. The public can also access information through the PDIC website at www.pdic.gov.ph.
To manage the expected influx of inquiries, PDIC strongly encourages clients to schedule appointments for personal visits to their office. Appointments can be arranged via telephone, email, or through the PDIC’s Facebook private messaging system.
The closure of CBB underscores the ongoing challenges faced by smaller financial institutions in the Philippines. It also highlights the critical role of regulatory bodies in maintaining the stability and integrity of the banking system.
As the situation unfolds, local officials and economic analysts are expected to closely monitor the impact of CBB’s closure on Bohol’s economy.
PDIC’s management of the bank’s assets and the processing of depositors’ claims will be crucial in mitigating potential financial distress among affected individuals and businesses.
PDIC has not yet released details about the specific circumstances leading to CBB’s closure or the total value of assets and deposits involved. Further updates are anticipated as the liquidation process progresses.
CBB management has not issued an official statement as of press time, in reaction to the closure order.
ABOUT CBB
The Cooperative Bank of Bohol, originally known as the Cooperative Rural Bank of Bohol, Inc., was founded on April 24, 1980, by 320 Samahang Nayons from various towns in Bohol. It holds the distinction of being the first cooperative bank in Region VII. The bank officially began its operations on November 3, 1980, under the authority of the Central Bank with an initial capital of PHP840,000.
The bank was re-registered in 2010 under Republic Act 9520 by the Cooperative Development Authority (CDA), reaffirming its commitment to cooperative banking principles and expanding its regulatory compliance. Its mission is to provide quality financial services, promote economic opportunities, and offer continuing education to member-cooperatives.
Over the years, the Cooperative Bank of Bohol has adapted to technological advancements, upgrading its systems to provide better services to its 127 member-cooperatives and the general public. The bank offers various types of loans and deposit services, emphasizing financial stability and the economic upliftment of Boholanos, especially farmers and fisherfolk.
The bank’s vision includes expanding its assets, enhancing customer service, and keeping pace with technological innovations, aiming to become a digitalized billionaire cooperative bank. It operates branches in Candijay, Inabanga, and Panglao Island to bring its services closer to the people of Bohol.