Banco Filipino Bankrupt, Place Under Receivership

From GMA News Online.

(Updated 9:53 p.m.) The Bangko Sentral ng Pilipinas (BSP) on Thursday ordered the closure of Banco Filipino Savings and Mortgage Bank and placed it under the receivership of state-run Philippine Deposit Insurance Corp. (PDIC), saying its liabilities topped its assets by P8.4 billion.

In a press conference late Thursday, BSP Deputy Gov. Nestor Espenilla Jr. said the central bank's seven-man Monetary Board decided to place Banco Filipino under the receivership of PDIC since it was no longer paying its liabilities in the ordinary course of business.

"Banco Filipino cannot continue in business without involving probable losses to its depositors and creditors," Espenilla told reporters at the central bank.

The policy setting Monetary Board also took note that Banco Filipino’s management and board of directors failed to restore its financial health and viability after having been given more than ample time to address its problems.

Banco Filipino has insufficient realizable assets to meet its liabilities since its net realizable value reached P8.4 billion, or its liabilities overwhelming its assets, Espenilla said.

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