BSP asks Banco Filipino to explain financial condition

MANILA, Philippines—The Bangko Sentral ng Pilipinas said on Tuesday that it has asked Banco Filipino Savings and Mortgage Bank to clarify its financial situation to clients and to the banking regulator, following reports that the financial institution had declared a voluntary “bank holiday.”

In a press statement, the BSP acknowledged that it had received reports and complaints from Banco Filipino’s depositors from various parts of the country.

“Accordingly, we have sent a letter addressed to the management of Banco Filipino asking them to explain the bank’s status to its clients and to the BSP,” the regulator said. “We are now waiting for their official response.”

Banco Filipino posted a statement outside its shuttered head office in Makati City, on Tuesday, saying that it had been “suffering from extraordinary financial panic” caused by a so-called “smear campaign” against it.

Banco Filipino said the adverse reports about the bank quoted the BSP as the source of “inaccurate and malicious imputations.”

“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 Bangko Sentral ng Pilipinas or the Monetary Board, we shall advise them accordingly,” said the bank’s executive vice president Maxy S. Abad in the letter dated March 14, 2011.

Shares of Banco Filipino were delisted by the Philippine Stock Exchange effective March 10 for “continuous violation” by the bank of disclosure rules and failing to submit structured reports to the bourse.

According to information on the bank’s website, Banco Filipino has 32 branches in Metro Manila and 30 in provincial locations.