MANILA, Philippines – After the Monetary Board had placed the beleaguered Banco Filipino (BF) under the receivership of the Philippine Deposit Insurance Corporation (PDIC), Senator Chiz Escudero is prodding the two camps to buckle down to work so they can begin processing the claims of depositors.
Escudero said BF should not busy itself with pointing fingers at entities and blaming them for the bank run, but rather cooperate with the PDIC and other concerned agencies to address the worries of depositors over their hard-earned money.
“While at the onset the PDIC has the ball now in so far as fulfilling its mandate to protect depositors, a sort of test-case for its charter, Banco Filipino should be made accountable to its depositors and has a lot of explaining to do,” Escudero said.
The senator said BF was liable for the bank run as they did not forewarn their depositors of its problems, causing worries to depositors who unwittingly got mired in the bank’s troubles.
While the PDIC covers the deposit insurance of up to P500,000 and its takeover of the bank will prevent further losses to its creditors and depositors, Escudero reminded the Bangko Sentral ng Pilipinas (BSP) to try to strengthen the credibility and integrity of banks through the application of proper safeguards as mandated by laws.
“This should not set precedent to other banks to do the same, letting BSP or PDIC to settle problems with depositors all because banks mismanaged their affairs. Our institutions should always see to it that banks as a whole must be liable,” Escudero explained.