Banco Filipino Savings and Mortgage Bank Shut Down

Banco Filipino Savings and Mortgage Bank is now on its turning point to shut down. Officials of the said company were asked by the Court of Appeals (CA) to defend their side by giving further explanations. With a span of five days, the supposed thrift bank will all be under receivership.

A resolution which consists of two pages has already been signed by (–foul word(s) removed–)ociate Justice Agnes Reyes-Carpio of the 14th Division of the Court of Appeals. This is to direct the Monetary Board (MB), Philippine Deposit Insurance Corporation (PDIC) likewise the Bangko Sentral ng Pilipinas (BSP) to discuss further reasons regarding to the said action on March 17.

The Court of Appeals itself formulated a decision in consideration to seek a temporary restraining order filed last March 22 by the Banco Filipino.

(–foul word(s) removed–)ociate Justice Fernanda Lampas-Peralta with Priscilla Baltazar-Padilla have concurred the propagated order last March 28.

As the statement depicted in Resolution No. 372-A, the Monetary Board ruled the declining bank to close. Furthermore, the bank will be brought under the receivership of PDIC that is lawfully recognized as the insurer of the state. This is due to the fact that “the bank was failed in service to almost P1-billion withdrawals and fund checks”.

Paying P5, 000 or less to the accounts of the bank depositors had already began as a responsibility of the PDIC. There are at least 62 branches standing nationwide while keeping a total of 177,652 depositors.

It was discovered that the bank shut down was a result of mismanagement. However, the charge was denied by the bank officials defending that there was no negative (–foul word(s) removed–)et value on the reports.