Applying pressure on BSP, Banco Filipino closes some branches

No wonder Perfecto Yasay Jr. wanted Governor Amando Tetangco out of the BSP, he is the co-Chair of Banco Filipino that yesterday closed some of its branches to force the BSP to provide Banco Filipino P25 billion worth of financial assistance and regulatory reliefs as compensation for its alleged illegal closure of the bank in 1985.

Banco Filipino has been avoiding any press interviews but came out with a statement blaming the BSP for a smear campaign that has caused depositors to massively withdraw funds. The BSP on the other hand denied any reports coming from them and in turn asked the failed bank to answer the complaints of its customers on the closure of branches. The BSP clarified that it has been receiving reports from depositors nationwide that some of the branches had closed its doors and refused any withdrawals. Also, the ATM system which connects Banco Filipino to other banks had been shut down by the company the BSP said. Reports noted the following branches closed: Munoz, Kamias and Timog in Quezon City, Butuan, Zamboanga, Dagupan, Iloilo City, Cagayan de Oro City and Naga City.

A PR firm has been managing the news outputs of Banco Filipino. This was monitored last night during the TV Patrol segment of Noli de Castro where a segment on the Banco Filipino closure was supposed to be aired – the said segment disappeared. However, online news of ABS-CBN continued with their 3 part story on the bank. Tweets on Twitter could not be controlled. Officials have been advised not to comment, further fueling fears on the stability of the Bank. Executive Vice President Maxy Abad of Banco Filipino in a rare statement issued last March 14 blamed the BSP for the bank run it is experiencing and asked the BSP to explain to its customers why the Bank has closed. Why should BSP explain when they should tell us what is wrong! – one depositor in the BF Munoz branch shouted.

Banco Filipino is currently experiencing the results of a failed publicity plan which it launched in December of last year in tandem with its legal battle with the BSP. Closing branches, a probable tactic to blame the BSP, further aggravates the situation by damaging their own image and the perception of its consumers. The plan has basically backfired! It would seem that something is indeed amiss within the bank and the PDIC may need to step in to further protect the government and depositors.

Is Banco Filipino is part of “the Plan” to sway the Presidents decision to retain and extend the services of Governor Tetangco? Mr. Yasay jr. should just face the music and sing his song for everybody to know the truth. For depositors with questions on their deposits, they may visit the PDIC website or call for their complaints to be logged. Deposits are covered up to 500,000. pesos only.

Banco Filipino has 62 branches nationwide, 30 of which are located in Metro Manila.

Tags: Amando M. Tetangco, Banco Filipino, bank Run, Banking, BSP, closure, Commercial Bank, Deposit insurance, Jopot Nograles, legal battle, Malacanang, Maxy Abad, monetary board, oust Tetangco, PDIC, Perfecto Yasay Jr., Philippines, PNOY, President Benigno Simeon C. Aquino, Subok na Matibay subok na matatag, Thrift Bank