Banco Filipino Update: BSP’s Monetary Board Authorized Bank’s Closure and Filing of Charges

By on Mar 18, 2011 in Announcement, Banking, Business, Finance Comments

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After the two- day “hiatus” of Banco Filipino from servicing its depositors, the Monetary Board of the Bangko Sentral ng Pilipinas (BSP) has finally authorized the closure of the bank and the filing of specified charges against persons who were involved in the bank’s infringements of banking laws. This was reported March 18, 2011 by local news sites.

Several branches of Banco Filpino have been closed for two days with a reassurance that depositors have nothing to worry about.

This Thursday, March 17, however, BSP has decided that they have given enough leeway for Banco Filipino to recoup its losses by providing a previous loan. Hence, this time, the Monetary Board did not approve of the bank’s request.

Although Maxy Abad, Banco Filipino’s executive vice president claimed that BSP has allegedly been trying to “orchestrate a smear campaign,” against them, Nestor Espenilla Jr., BSP Deputy Governor, has still announced the decision of the Monetary Board: they will not be providing the requested loan because Banco Filipino could no longer pay its dues.

Banco Filipino is now under the receivership of PDIC with the close supervision of Bangko Sentral ng Pilipinas.

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