MANILA, Philippines—Depositors of Banco Filipino on Monday asked the Court of Appeals, Bangko Sentral ng Pilipinas, Monetary Board, and the Philippine Deposit Insurance Corp. (PDIC) to halt the liquidation of the bank and to stop the sale of its assets.
In its 38-page petition-in-intervention, petitioners said Resolution 1635 failed to comply with the proceedings in receivership and liquidation as provided under Section 30 of Republic Act 7653 or the New Central Bank Act of 1993.
The intervenors and the bank’s employees said declaring Banco Filipino as insolvent was done hastily and without proof of notice to the bank’s board.
They said, not only were the bank, the stockholders, and employees’ rights were violated but the rights and interests of the depositors as well.
“Banco Filipino’s illegal closure has effectively resulted in the BSP divesting depositors of their hard-earned savings and in the BSP depriving employees of their permanent means of livelihood, which at bottom is a serious deprivation of life and liberty,” the intervenors said.
“Depositors and employees are literally dying and continuously incurring debts to sustain their daily needs,” they added.
The intervenors also asked the appeals court to produce all documents regarding the findings of insolvency of Banco Filipino.
“With such full disclosure, it may also be determined whether proper or lawful procedures were taken or conducted in the examination of Banco Filipino’s books of accounts, especially in light of the disturbing personal experience of [a junior counsel] who was informed, upon inquiry with the BSP, that the Manual for Examination Procedures is not available to the public because it is an ‘internal document’ which is a secret strategy used on banks,” the intervenors added.
The BSP placed the bank under receivership by PDIC in March 2011.