Malacanang slams Banco Filipino intervention suggestion

Presidential Spokesperson Edwin Lacierda has slammed the suggestion of former SEC Chair and current Banco Filipino Co-Chair Perfecto Yasay Jr. for Malacanang to intervene in behalf of Banco Filipino in its current fight with the BSP. Lacierda said that this is a banking regulatory matter that is best addressed by the Bangko Sentral ng Pilipinas. He said that the President has full confidence in Governor Amando Tetangco and that this will not in anyway affect his re-appointment. Instead he advised the Officials of Banco Filipino to answer the letter sent by the BSP on why they had closed their bank branches for the last two days.

Yasay for his part denied that the bank had declared a “Banking Holiday”. He stated on national TV that the Banco Filipino remains open which was contrary to TV reports showing the branches closed and angry depositors outside waiting for an explanation. Yasay stated that the BSP has been waging a smear campaign against Banco Filipino by coming out with negative news reports about the bank. They want us to admit that we went on a banking holiday as a precursor to close us permanently. Depositors where wondering what is the true status of the Bank.

Based on sources, the Bank undertook this tactic to force the BSP to provide it over 18 Billion pesos in subsidies and assistance immediately. In essence, they closed the bank branches to create public furor and pressure the BSP to release the funds which the Monetary Board is supposed to decide on en-banc. Phone replies to depositor queries as to when the Banks branches would open was met with a canned reply that this all depends on the Bangko Sentral ng Pilipinas. Text messages from the main office of Banco Filipino were received by its employees advising them not to go to work until further notice. In some branches however, bank managers were present but refused to come out and be interviewed.

Banco Filipino claims they have over 17 Billion in deposits. But the BSP has found that they have an overdraft of over 903 Million pesos. The BSP has been monitoring the current bank practices of Banco Filipino ever since it re-opened in 1994. It was noted that reporting procedures were not complied with resulting in the de-listing of the bank from the Philippine Stock Exchange. A review conducted by the PSE showed that Banco Filipino continuously violated Section 17.8 of the Revised Disclosure Rules in connection with the submission of structured reports. This meant that the bank could no longer sell its shares in the stock market as of March 10 this year.

Further, Banco Filipino continuously failed to submit financial reports to the Securities and Exchange Commission (SEC) in recent years. The reports are important in determining whether Banco Filipino is in good financial condition. Yasay has admitted to this and further claims that the de-listing is a concerted effort by regulators to close Banco Filipino.

It should be noted that Yasay using the UCCP came out with full page print ads that asked President Aquino not to extend the term of BSP Governor Amando Tetangco. Jose Nograles of the PDIC, who was also eyeing the position but was politically unacceptable due to his ties with the previous administration remains silent and instead has stated that the ball is in the court of the BSP. Eventually, “if” Banco Filipino permanently closes, he would find that ball in his neck of the woods when the depositors finally claim the money they deposited in the Lazarus Bank known as Banco Filipino.

Tags: Amando Tetangco Jr., Banco Filipino, Bangko Sentral ng Pilipinas, bank holiday, bank Run, Banking, BSP, de-listed, Edwin Lacierda, Jose Nograles, Malacanang, PDIC, Perfect Yasay Jr., Philippine Stock Exchange, Philippines, President Benigno Simeon C. Aquino, PSE, SEC, Securities and Exchange Commission, stocks and shares