Banco Filipino - 2011 Closure

2011 Closure

Banco Filipino was Closed by the Banco Sentral ng Pilipinas by claiming that Banco Filipino has exceeded its assets with more liabilities which is against Philippine law which states that a bank's assets must equal ore be in excess of its liabilities with an 8.4 billion pesos worth of liabilities. However Banco Filipino claims that it had 31.4 billion worth of properties and 23.8 Billion pesos worth of liabilities leaving the savings and mortgage bank with 1.6 billion pesos worth of positive assets showing that its assets according to Banco Filipino are more than its liabilities which could have been used in its planned rehabilitation.

Meanwhile, the Philippine Deposit Insurance Corp. (PDIC) has revealed that they will start paying next month Banco Flipino depositors whose accounts had at least P10,000 when the bank went on a holiday.

PDIC executive vice president Cristina Orbeta said it has settled 53 percent of the closed bank’s deposit liabilities. These were accounts that had P5,000 or less when Banco Filipino shut down.