Banco Filipino suffering from an extraordinary financial panic - Yasay

Several branches of Banco Filipino were not open on Tuesday sending many depositors into panic. It fueled speculations that the bank with the popular slogan, Subok na Matibay, Subok na Matatag, went on a 'bank holiday'(according to investorwords.com, it means temporary closing of a bank in the event that its obligations exceed its resources).

Banco Filipino vice chair Perfecto Yasay denied rumors that their bank had taken a unilateral bank holiday.

He said they are suffering "an extraordinary financial panic caused by a well-orchestrated smear campaign" quoting Bangko Sentral ng Pilipinas as "source of inaccurate and malicious imputations".

"We are still open but unfortunately our personnel fear for themselves, especially those in the branches, because we haven't received any help from the BSP. It could be violent, as we're talking about the right of depositor," he added.

On a notice posted at their branches, Banco Filipino Executive Vice President Maxy Abad said "the bank is exhausting all efforts to protect its depositors by asking the BSP to stave off the heavy withdrawals by denying the derogatory news articles attributed to them and by providing emergency loan assistance after submitting sufficient collateral,"

"Despite the urgency of all these requests, we have not recieved any official word from the BSP/MB [Monetary Board] on the action they have taken, if any. Furthermore, we have also reiterated the immediate implementation of the approved business plan as ordered by the Makati-RTC. Moreover, the court order prohibits the BSP/MB, its officials, agents and any persons acting for and in their behalf from committing any act prejudicial to the operation of the bank," the statement read.

"Kindly inform and clarify this matter to our depositors and assure them that as soon as we receive official notice of any favorable action taken by the BSP/MB we shall advise them accordingly," the statement ended.

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Meanwhile, here's an entry of Banco Filipino in Wikipedia you might want to check out:

Banco Filipino (PSE: BF) is a bank in the Philippines. It is also known for property developments such as BF Homes, subdivisions in Parañaque, Quezon City and Las Piñas.

History

Banco Filipino was established in 1964. It then set out to leave its mark as an innovator, by conceiving the first all-woman bank branch, which became a hit, in 1965, and by 1969 became the first bank to process online transactions in real time, giving customers the ability to deposit in any online BF branch. From 1966 until its closure in 1985, BF was the largest savings bank in the Philippines.

In 1970, Banco Filipino started expanding into the countryside with its first provincial branch opening in Naga City. By 1972, the bank's customer base grew to one million customers, even in the midst of martial law. It was voted the most preferred bank in Metro Manila in 1975. By 1981, the bank achieved what no other savings bank could: 89 branches, four billion pesos worth of assets, three million customers and three thousand shareholders.

On January 25, 1985, even though Banco Filipino was performing well and was seen by most people as a very healthy bank, the Bangko Sentral ng Pilipinas ordered its closure over alleged insolvency. For most of the 1980s, Banco Filipino would remain closed, until a 1991 ruling made by the Supreme Court declared the bank's closure illegal. Banco Filipino subsequently reopened, albeit only with fifteen of its original 92 branches, in 1994.

For much of the remaining 1990s, Banco Filipino would be busy trying to reestablish itself. It became a member of BancNet after launching the BF Cash Card in 1995 and issued its first credit card, a VISA card, a year later. Two years later, BF shares were re-listed on the Philippine Stock Exchange, and the Supreme Court declared in 1999 that Banco Filipino is entitled to damages payments caused by its illegal closure.

Ownership

* Metropolis Development Corporation: 19.51%
* Apex Mortgage and Loans Corporation: 18.7%
* LBH Incorporated: 7.06%
* BF Retirement Fund: 2.17%
* BF Citiland Corporation: 1.98%
* Grand Farms: 1.9%
* Himlayang Pilipino: 1.86%
* Spring Sun Management Systems Corporation: 1.83%
* Tropical Land Corporation: 1.78%
* El Grande Development Corporation: 1.75%
* PII Trading: 1.66%
* Linktop Properties: 1.63%
* CLI Management Corporation: 1.41%
* Casa Tropical: 1.41%
* Others (includes public stock): 35.35%

Firsts

In line with its corporate philosophy, which is personalized service, Banco Filipino is known for the following firsts:

* Open teller counters instead of the then-common glass-encased counter. Today, all banks have adopted the open teller counter concept.
* Plastic signs inside bank branches
* Acceptance of initial savings deposits that are as low as one peso
* The offering of capital stock to its depositors. Through that scheme, Banco Filipino depositors could in effect become bank co-owners
* Extended banking hours from Monday to Saturday, 8 am to 8 pm, 6 days a week, 12 hours a day
* Monthly and even daily (known as "Interest Araw-Araw") interest payments. Many commercial banks and some universal banks have since adopted the monthly interest payment scheme.
* Advance interest payments on time deposits.
* The offering of negotiable orders of withdrawal. At the time, savings banks were prohibited from issuing government securities.

Info courtesy of the poc.net and wikipedia.com. Read more on the Wikipedia entry HERE.