Banco Filipino declares holiday, BSP says explain

(Updated 7:17 p.m.) Several branches of Banco Filipino Savings and Mortgage Bank of the Aguirre family were closed for a bank holiday Tuesday, the second time the bank with the popular slogan, Subok na Matibay, Subok na Matatag,"closed down" in 26 years. This prompted the Bangko Sentral ng Pilipinas (BSP) to order Banco Filipino to address the complaints of depositors from different parts of the country after the bank did not open Tuesday. BSP spokesperson Fe dela Cruz said the BSP has been receiving reports and complaints from depositors of Banco Filipino all over the country. "Accordingly, we have sent a letter addressed to the management of Banco Filipino asking them to explain the bank's status to its clients and to the BSP," dela Cruz said in a statement. For its part, Banco Filipino blamed the BSP for the its closure. Banco Filipino and the BSP are embroiled in a legal tussle over the bank's closure in 1985. "As you are all aware, we have been suffering from extraordinary panic caused by a well orchestrated smear campaign quoting BSP as the source of inaccurate and malicious imputations," Banco Filipino executive vice president Maxy Abad stated in a March 14, 2011 memo. Banco Filipino is exhausting all efforts to protect its depositors by asking the BSP to stave off the heavy withdrawals by denying the derogatory news articles attributed to them and by providing emergency loan assistance after submitting sufficient collateral, Abad said. "Despite the urgency of all these requests, we have not received any official word from the BSP Monetary Board on the action they have taken, if any. Furthermore, we have also reiterated the immediate implementation of the approved business plan as ordered by the Makati regional trial court," the bank official said. The lower court has issued an order prohibiting the BSP, its officials, agents, and any persons acting for and in their behalf from committing any act prejudicial to the operation of the bank, according to the Banco Filipino official.
For the latest Philippine news stories and videos, visit GMANews.TV Bank seeks financial aid Banco Filipino is seeking P25 billion worth of financial assistance and regulatory relief as compensation for what it alleged as the illegal closure of the bank in 1985. The Makati RTC on Nov. 18, 2009 issued an order directing the BSP and the Monetary Board to immediately implement Banco Filipino's business plan. The court directed the BSP and the policy-setting body to release financial assistance and package of regulatory relief without delay. The Supreme Court also affirmed a decision by the Court of Appeals (CA) ordering the RTC to proceed with the trial of the P18.8-billion damage suits filed by Banco Filipino against the Central Bank Board of Liquidators in connection with the bank’s closure in 1985. The bank, founded in 1964 by Don Tomas Aguirre, has 32 branches in Metro Manila and nearby areas as well as 30 branches in the provinces. On its website, Banco Filipino is saying it was ordered closed by the Central Bank in 1985, as it was supposedly insolvent, despite the bank's outstanding performance. As early as 1966, Banco Filipino emerged as the biggest savings bank in the country with 92 branches prior to its closure. In 1994, the bank opened 15 of its 92 branches and now has 62 branches operating nationwide. State-run Philippine Deposit Insurance Corp. (PDIC), for its part, said it would only act on the case of Banco Filipino once it is placed under receivership. "Apparently, we have received reports of non-servicing of deposit withdrawals. Ball is in the court of the BSP. We are awaiting their action on the matter," PDIC president Jose Nograles said in a text message to reporters. — VS, GMA News