The Top Distressed Philippine Rural and Cooperative Banks as of December 31, 2018

Editor's Note: The Philippine Deposit Insurance Corporation (PDIC) advised consumers to wisely choose the banks where they will deposit their money. The trouble is, most depositors don't and can't read financial statements before they open a bank account. The regulators, whose job is to safeguard the public's money, have not done a good job recently.  In the past ten years, two commercial banks, twenty-one thrift banks, and a staggering 187 rural banks have collapsed, often quite suddenly and without warning:  Regulators do have a problem bank list that they do not divulge to the public, for fear of sparking another bank run. So who can the public turn to, to advise them where to put their money? No one, except the banks themselves who will always promote their self-interests. This analysis is an attempt to fill in that knowledge gap, by screening out the weaker banks that seem ready to implode at any given moment.

Editor's Note: The ratio of Distressed Assets to Total Capital Cushion is a variant of the famous Texas Ratio, which was widely used by US financial regulators to predict bank failure during the US Savings and Loan Crisis in the 1980s and early 1990s. The basic premise is that a bank with Distressed Assets greater than its Capital Cushion is in danger of insolvency because a significant drop in the value of  the Distressed Assets will eat into a significant amount of the bank's capital.  A bank that has a Distressed Ratio greater than 100% is flagged as borderline insolvent.  For a more detailed discussion of this ratio, please visit a previous blog post: The Texas Ratio of Select Philippine Banks


This is a list of the Top Distressed Philippine Rural and Cooperative Banks as of December 31, 2018.


The list of Philippine Rural and Cooperative Banks classified as distressed as of December 31, 2018 are as follows:

 

Philippine Rural and Cooperative Banking System
Total Distressed Assets/ Total Capital Cushion
December 31, 2018
In Php
	December 31, 2018
Bank	Total Distressed Assets (In PhP)	Total Capital Cushion (In PhP)	Distressed Assets/ Total Capital Cushion (In %)
RB OF JAEN INC	257,582,452.22	55,026,484.31	468.11%
RB OF CENTRAL PANGASINAN (BAYAMBANG) INC	794,792,001.37	188,203,491.32	422.30%
COOP BANK OF CAGAYAN	365,784,732.40	99,514,955.30	367.57%
MOUNT MAKILING RURAL BANK INC	942,900,509.92	257,395,922.88	366.32%
BENGUET CENTER BANK INC A RB	211,041,716.18	64,443,676.95	327.48%
VILLAGE BANK INC (A RURAL BANK)	358,714,853.52	111,293,160.57	322.32%
RB OF BROOKE'S POINT (PALAWAN) INC	330,247,730.68	107,357,982.79	307.61%
COMMTY RB OF DAPITAN CITY INC	439,240,643.67	155,368,754.58	282.71%
RB OF DULAG (LEYTE) INC	320,866,205.38	119,127,199.54	269.35%
RB OF CARDONA (RIZAL) INC	310,948,264.60	127,773,780.93	243.36%
RB OF SAN MATEO(ISABELA) INC	315,108,362.16	139,423,947.36	226.01%
RB OF GENERAL TRIAS INC	313,414,647.11	139,601,022.01	224.51%
RB OF MIDSAYAP INC	217,395,132.10	101,399,394.38	214.39%
TANAY RB INC	848,823,174.27	400,615,426.38	211.88%
RANG-AY BANK INC (A RURAL BANK)	943,474,566.90	502,320,301.75	187.82%
BANGKO CARRASCAL INC (A RB)	186,046,831.82	101,910,644.87	182.56%
PLANBANK "RB OF CANLUBANG PLANTERS INC"	276,525,847.96	162,960,919.55	169.69%
RBG IMPERIAL BANK INC(A RURAL BANK)	155,080,511.67	91,737,680.75	169.05%
COUNTRY BUILDERS BANK INC (A RURAL BANK)	558,273,749.97	338,918,879.61	164.72%
GRAND-AGRI RURAL BANK	84,132,604.02	52,235,964.88	161.06%
SUGBUANON RB INC	143,179,896.02	90,126,142.18	158.87%
AMA RURAL BANK OF MANDALUYONG INC	1,404,827,025.66	920,331,389.05	152.64%
RB OF SAN LUIS (PAMPANGA) INC	159,393,360.56	105,768,654.22	150.70%
RB OF PILAR (BATAAN) INC	236,509,717.51	157,229,628.57	150.42%
RB OF BAMBANG (NUEVA VIZCAYA) INC	177,856,308.00	135,878,071.36	130.89%
RB OF BAYOMBONG INC	205,571,230.83	171,028,940.19	120.20%
D' ASIAN HILLS BANK INC (A RURAL BANK)	164,874,223.31	141,472,347.72	116.54%
GATEWAY RURAL BANK INC	134,857,673.68	116,456,818.28	115.80%
VALIANT BANK INC (A RURAL BANK)	400,024,552.38	348,146,993.95	114.90%
RB OF MARIA AURORA (AURORA) INC	270,091,270.41	238,887,658.99	113.06%
GM BANK OF LUZON INC (A RURAL BANK)	543,722,246.60	481,843,313.51	112.84%
COMMON WEALTH RURAL BANK INC	136,876,385.84	122,726,745.62	111.53%
RB OF MABITAC (LAGUNA) INC	110,805,779.26	103,673,414.60	106.88%
BOF INC (A RURAL BANK)	619,399,017.20	588,331,845.48	105.28%
LAGAWE HIGHLANDS RB INC	65,725,576.27	65,926,213.05	99.70%
RB OF MAGDALENA (LAGUNA) INC	124,883,676.65	127,950,875.48	97.60%
LIBERTY BANK (A RURAL BANK) INC	57,992,073.63	59,718,356.52	97.11%
BANGKO MABUHAY (A RURAL BANK) INC	301,871,448.96	316,424,796.95	95.40%
SAVIOUR RURAL BANK INC	90,681,900.92	98,057,212.25	92.48%
ENTREPRENEUR RB INC	82,909,031.92	91,581,927.15	90.53%
ILOCOS CONSOLIDATED COOPERATIVE BANK	247,093,235.02	273,668,154.63	90.29%
CONSOLIDATED COOPERATIVE BANK	512,160,535.78	573,494,276.25	89.31%
RB OF ITOGON (BENGUET) INC	108,672,507.48	130,328,760.60	83.38%
RB OF MIAGAO (ILOILO) INC	89,185,816.63	108,272,092.04	82.37%
PROGRESSIVE BANK INC (PROGRESSIVE A RURAL BANK INC)	132,959,185.98	171,092,812.67	77.71%
PBCOM RURAL BANK INC	686,332,094.14	893,664,221.36	76.80%
PEOPLES BANK OF CARAGA INC (A RURAL BANK)	395,270,905.67	528,366,265.99	74.81%
MT CARMEL RURAL BANK INC	272,599,365.05	364,904,068.62	74.70%
COOP BANK OF BENGUET (CBB)	74,896,020.28	103,267,250.09	72.53%
AGRIBUSINESS RURAL BANK INC	713,437,476.32	991,579,425.77	71.95%
COOPERATIVE BANK OF BOHOL	76,056,272.06	108,358,908.36	70.19%
NEW RB OF SAN LEONARDO(N.E.) INC	153,469,227.21	224,534,333.51	68.35%
MALARAYAT RB INC	129,988,535.27	190,380,415.56	68.28%
CANTILAN BANK INC (A RURAL BANK)	393,515,428.19	577,145,382.29	68.18%
ALIAGA FARMERS RURAL BANK INC	124,725,738.76	185,406,324.32	67.27%
COOPERATIVE BANK OF NUEVA VIZCAYA	73,081,320.76	113,052,472.51	64.64%
RB OF MABALACAT INC	68,447,243.33	109,513,776.03	62.50%
RB OF POZORRUBIO INC	27,553,640.70	44,135,597.47	62.43%
ONE NETWORK BANK INC (A RURAL BANK OF BDO)	4,397,187,550.90	7,250,597,050.42	60.65%
RNG COASTAL BANK INC(A RURAL BANK)	96,075,595.05	162,387,138.30	59.16%
DUNGGANON BANK (A MICROFINANCE RURAL BANK) INC	83,235,386.43	142,311,927.54	58.49%
RB OF SAN PASCUAL(OBANDO BULACAN)INC	44,485,738.60	76,586,430.96	58.09%
RB OF LEBAK (SULTAN KUDARAT) INC	56,572,051.95	100,646,642.58	56.21%
INSULAR SAVERS BANK INC (A RURAL BANK)	418,160,834.99	747,364,053.54	55.95%
BANCO SANTIAGO DE LIBON INC	64,128,398.43	115,377,927.98	55.58%
SOUTH BANK (A RURAL BANK) INC	42,018,021.92	76,872,932.01	54.66%
HIGHLAND RURAL BANK INC	90,277,732.45	169,023,706.21	53.41%
COOP BANK OF QUEZON PROVINCE	66,430,930.89	126,238,955.14	52.62%
RB OF DUMANGAS INC	49,659,982.49	97,801,919.05	50.78%
RB OF ALABEL (SARANGANI) INC	46,386,404.30	91,635,279.01	50.62%
BHF RURAL BANK INC	166,656,532.45	330,373,882.77	50.44%
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE RURAL BANK)	43,180,907.74	85,849,043.70	50.30%
MACTAN RURAL BANK (LAPU-LAPU CITY) INC	107,072,599.77	213,090,553.91	50.25%
FIRST TAGUM RURAL BANK INC	161,781,648.77	322,760,520.76	50.12%
COMMTY RB OF CATMON (CEBU) INC	66,637,006.60	133,666,173.65	49.85%
RB OF MARAGONDON INC	37,784,953.62	77,698,994.29	48.63%
FILIDIAN RURAL BANK OF ANTIPOLO INC	70,170,678.44	145,236,947.98	48.31%
ASPAC RURAL BANK INC	152,629,444.67	318,408,106.58	47.94%
GOLDEN RURAL BANK OF THE PHILIPPINES INC	34,738,565.68	73,374,423.46	47.34%
CAMALIG BANK INC (A RURAL BANK)	145,629,608.18	310,840,361.40	46.85%
RB OF BAGABAG (N.V.)INC	80,352,269.48	179,382,817.78	44.79%
SUMMIT BANK (RB OF TUBLAY INC)	154,397,694.32	354,918,262.51	43.50%
RB OF GATTARAN (CAGAYAN) INC	44,077,962.12	102,368,383.18	43.06%
BALANGA RURAL BANK, INC.	35,101,114.61	81,710,955.91	42.96%
RURAL BANK OF PLACER (SURIGAO DEL NORTE) INC	53,251,990.89	129,303,736.79	41.18%
MALLIG PLAINS RURAL BANK (ISABELA) INC	53,673,113.94	130,987,796.15	40.98%
EAST WEST RURAL BANK INC	1,606,436,316.51	3,981,301,733.49	40.35%
RB OF DOLORES (QUEZON) INC	30,385,165.22	76,022,473.28	39.97%
BANCO LAGUNA INC (A RURAL BANK SINCE 1965)	51,490,572.84	130,833,557.64	39.36%
MVSM BANK (A RURAL BANK SINCE 1953) INC	52,339,126.22	133,154,130.28	39.31%
RB OF ANGELES INC	201,336,946.64	531,182,757.11	37.90%
LAGUNA PRESTIGE BANKING CORPORATION (A RURAL BANK)	85,717,992.39	235,407,945.83	36.41%
NORTH PACIFIC BANKING CORPORATION (A RB OF STA MARIA ISABELA	24,452,539.35	68,907,976.52	35.49%
RURAL BANK OF SAN ANTONIO INC	57,967,322.28	164,538,746.17	35.23%
RB OF GUINOBATAN INC	37,023,382.49	106,434,905.11	34.79%
RB OF PILAR (SORSOGON) INC	25,990,521.93	76,158,909.07	34.13%
RB OF BAY INC	22,410,919.55	65,760,102.60	34.08%
RB OF DIGOS INC	69,775,961.41	207,825,021.50	33.57%
CARD MRI RIZAL BANK INC A MICROFINANCE-ORIENTED RURAL BANK	166,923,926.24	506,709,778.27	32.94%
BANGKO MONTANOSA INC (A RURAL BANK)	34,586,483.92	105,674,470.83	32.73%
METRO SOUTH COOP BANK	308,139,038.35	952,955,788.00	32.34%
IMUS RURAL BANK INC	68,454,551.26	212,798,798.00	32.17%
RB OF STA ROSA DE LIMA (PANIQUI TARLAC) INC	55,991,384.21	175,268,907.84	31.95%
RB OF PORAC (PAMPANGA) INC	99,018,957.07	310,977,955.15	31.84%
BANKWAYS INC (A RURAL BANK)	75,594,932.11	239,445,604.04	31.57%
STA MARIA RURAL BANK INC	25,109,429.71	81,007,306.06	31.00%
RB OF ROSARIO (LA UNION) INC	19,421,589.83	62,745,053.81	30.95%
RB OF CAUAYAN INC	81,552,365.85	267,609,925.43	30.47%
RB OF SOLANO (NUEVA VIZCAYA) INC	53,331,997.95	179,595,324.24	29.70%
RB OF TANGUB CITY (MIS OCC) INC	33,985,053.73	115,124,354.82	29.52%
GUAGUA RURAL BANK INC	337,513,725.99	1,168,927,265.05	28.87%
FIRST ISABELA COOP BANK INC(FICOBANK)	241,239,022.49	855,062,432.07	28.21%
COOP BANK OF COTABATO	182,996,695.50	658,744,611.40	27.78%
QUEZON CAPITAL RB INC	103,302,461.27	380,394,115.53	27.16%
RB OF PARACALE(CAMARINES NORTE) INC	26,745,921.99	106,469,039.11	25.12%
CARD BANK INC (A MF RB)	650,562,492.15	2,709,557,140.32	24.01%
SECURED BANK INC (A RB)	29,730,281.42	123,968,847.54	23.98%
KATIPUNAN BANK INC "A RURAL BANK"	111,081,976.67	466,378,334.75	23.82%
CENTURY RURAL BANK INC	17,751,724.08	78,346,543.01	22.66%
NATIONAL TEACHERS & EMP. COOP BANK	26,798,611.23	123,829,471.89	21.64%
ARDCIBANK INC A RURAL BANK	20,164,349.66	95,496,032.05	21.12%
RB OF RIZAL (ZAMBOANGA DEL NORTE) INC	33,256,367.41	162,709,730.44	20.44%
RB OF POLA (ORIENTAL MINDORO) INC	61,849,060.11	321,036,156.51	19.27%
RB OF MONTALBAN INC	12,238,261.84	64,146,336.24	19.08%
RBT BANK INC A RURAL BANK	33,772,196.72	185,769,683.54	18.18%
RB OF ANTIPOLO INC	17,894,178.49	111,168,636.52	16.10%
CEBUANA LHUILLIER RB INC	25,267,926.62	157,814,343.85	16.01%
LIFEBANK- A RURAL BANK	38,158,756.04	242,108,639.50	15.76%
GUAGUA SAVERS BANK(A RB) INC	12,625,674.89	84,668,894.74	14.91%
RB OF STA IGNACIA INC	16,158,659.42	113,436,308.07	14.24%
RB OF BARILI (CEBU) INC	48,590,536.01	399,365,955.34	12.17%
MANOR BANK - A RURAL BANK CORP	14,873,074.78	124,057,060.23	11.99%
RB OF PANDI (BULACAN) INC	29,114,652.88	245,406,555.78	11.86%
MARAYO BANK INC (A RURAL BANK)	66,959,136.56	698,733,869.90	9.58%
CAVITE UNITED RURAL BANK CORP	30,064,876.24	374,531,561.01	8.03%
RB OF GLORIA (OR MIN) INC	3,942,857.81	98,296,212.49	4.01%
INNOVATIVE BANK INC (A RURAL BANK)	8,662,345.84	360,748,295.28	2.40%
Grand Total	30,292,398,503.01	45,134,783,994.71	67.12%

Source: www.bsp.gov.ph


Disclaimer:


This list only serves as a screening guide.  It is not a definitive guide and must be taken in the context of other factors.  The figures are based on the individual banks' statement of condition as of December 31, 2018 as published in the BSP website (www.bsp.gov.ph). For this analysis, no attempt was made to go through the audited financial statements of each bank. Readers are suggested to make their own investigations and verify the figures presented. Both BSP and PDIC have their own problem bank screening systems that are much more sophisticated in scope and design, given that they have more access to information over the banks they regulate.