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Liquidity problems prompt PDIC to take over 4 more banks


MANILA, Philippines - The Philippine government is taking over four more banks after the Bangko Sentral ng Pilipinas (BSP) found them to be having liquidity problems. In a statement released on Monday, the BSP said Nation Bank in Bacolod City, Rural Bank of DARBCI in General Santos City, Bicol Development Bank in Legaspi City and Rural Bank of Carmen in Cebu are now under receivership of state insurer Philippine Deposit Insurance Corp. (PDIC). "The receivership paves the way for the PDIC to take over the banks' assets to protect the interest of their depositors and to start processing deposit insurance claims," the BSP said. Prior to placing the four banks under PDIC receivership, the BSP has already ordered the state insurer to take over nine other banks. These are the Rural Bank of Paranaque, Rural Bank of Bais in Negros Oriental, First Interstate Bank in Tacloban, San Pablo City Development Bank in Laguna; as well as the Pilipino Rural Bank, Bank of East Asia and Philippine Countryside Rural Bank in Cebu; and the Rural Bank of San Jose and the Dynamic Bank in Batangas. "These banks were already being closely monitored and engaged by the Bangko Sentral in accordance with rigorous due process requirements mandated by law since 2005, long before the global financial turmoil, for potentially unsafe and unsound banking practices that could pose a danger to their customers," the BSP said. The central bank assured that the troubled banks represent a small percentage of the country's banking system. "The Philippine banking system remains stable, highly capitalized, and highly liquid," the BSP said. The Philippines had 38 universal and commercial banks, 78 thrift banks, 672 rural banks, and 45 cooperative banks as of October 30, 2008. - GMANews.TV
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