BSP says Export and Industry Bank closed, assures public banking system stable

The Bangko Sentral ng Pilipinas on Friday ordered the closure of the Export and Industry Bank, even as it reassured the public the banking system remains stable.

 

BSP Deputy Governor Nestor Espenilla Jr. said the Monetary Board decided Thursday night to put the bank under receivership to protect its 50,000 depositors.

 

"Kagabi nagdesisyon ang Monetary Board na ilagay under receivership ang Export and Industry Bank. Sabi ng bangko... may malalaking depositor na hindi nila mabayaran... at sinabing mapilitan silang mag-bank holiday," Espenilla said in an interview on dzBB radio.  

He said the Monetary Board had also notified the Philippine Deposit Insurance Corp. (PDIC) about the bank's situation.

 

Espenilla said the PDIC will take over the bank, which he described as one of the country's smallest commercial banks with 50 branches, 30 of which are in Metro Manila.

 

He said the bank had submitted a rehabilitation plan earlier, and that the plan was approved.

 

But he said that with the closure order, "it's a different ballgame" now.

 

Espenilla said that at the time the bank was ordered closed, it had assets of P25 billion, or 0.3 percent of the P7 trillion in the Philippine banking system.

 

Assurance to depositors, public

 

Espenilla reassured depositors and the public the closure of the bank will not affect the banking system as a whole.

 

He said depositors have a PDIC insurance coverage of up to P500,000.

 

On the other hand, he maintained this is not expected to adversely affect the banking system, which he described as very liquid.

 

"Sa kabuuan matatag ang banking system (Overall, the Philippine banking system is very resilient)," he said.