By LEE C. CHIPONGIAN
August 28, 2011, 8:00am
MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has filed a
total of 95 cases against directors and officers of banks placed under
receivership and liquidation as of the end of the first quarter this year.
Documents submitted to the Monetary Board show that the most common and
virulent cases are syndicated estafa, estafa through falsification of
commercial and public documents, and violations of Republic Act No. 7653
or The New Central Bank Act. Of the 95 cases, 50 were cases filed with
courts and 44 with the Department of Justice.
With the exception of Urban Bank and Orient Bank, most of the filed
cases were against rural banks and savings and loans associations. Cases
slapped on recently padlocked Banco Filipino Savings and Mortgage Bank
were not included in the list of 95 cases.
In 2010, the BSP has P1.05 billion worth of assets and liabilities under
its administration from all the closed banks, non-banks, and other
closed financial institutions.
In a liquidation process, the administrator has to dispose or sell the
assets to pay off the closed banks, non-banks and financial
institutions' creditors. A bank was considered insolvent when its
liabilities exceed assets. The shortfall was addressed by selling the
assets.
The Philippine Deposit Insurance Corp. (PDIC) was the liquidator for
regulated banks and the liquidation courts for other closed financial
institutions.
In some cases, the BSP appoints another liquidator pending court cases.
PDIC has the mandate as the statutory receiver and liquidator of closed
banks.
PDIC assistance to closed banks was in the form of liquidity assistance,
purchase of assets and assumption of liabilities. If it could not
provide or if it has no available funds for these purposes, PDIC could
apply for loans from BSP to finance assistance to banks.
Last May, the BSP started a review on a new set of policies on how
problematic banks will be placed under receivership.
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