CA affirms closure of Banco Filipino-A A +A
Wednesday, December 18, 2013
BANCO Filipino Savings and Mortgage Bank (BFSB) will remain closed for not paying its obligations.
In a resolution, the Court of Appeals (CA) Former Special Seventh Division said bank shareholders did not present any compelling reason to reverse their November 2012 ruling, which backed its closure.
“After a careful review of petitioners’ motion for reconsideration, we find that the issues and arguments raised in the said motion were already comprehensively discussed and passed upon by this Court in its amended decision,” the CA said.
Banco Filipino was padlocked by the Bangko Sentral ng Pilipinas on March 17, 2011 through Monetary Board Resolution 372-A as its liabilities allegedly exceeded assets by P8.4 billion as of September 30, 2010. This paved the way for the regulator to put the bank under receivership.
Among others, the bank told the CA in its motion for reconsideration that it has sufficient real properties to cover for the debts and there is no need to craft a separate rehabilitation plan since Banco Filipino and the BSP-Monetary Board had ironed things out before.
The CA earlier ordered the BSP to implement the P25-billion emergency loan for Banco Filipino to revitalize operations even as the tribunal chided the regulator for closing the bank without due process.
BSP records show that Banco Filipino has 177,652 depositors, majority of which are small depositors fully entitled by deposit insurance of up to P500,000 each.
Banco Filipino was first closed down in 1985 for failing to pay its loans, according to the then Central Bank of the Philippines. But the Supreme Court ruled the closure illegal in 1991, allowing the bank to operate in 1994. (Sunnex)