MANILA – The Philippine Deposit Insurance Corp. will request the central bank for the extension of the former’s six-month receivership on the Export and Industry Bank.
EIB was closed down on April 27 and the six-month receivership of PDIC ends on Oct. 26.
“We will ask the Bangko Sentral ng Pilipinas for a 60-day extension,” PDIC Executive Vice President Cristina Orbeta said.
BSP Deputy Governor Nestor Espenilla Jr. has said that Monetary Board officials will grant PDIC’s request if it asks for the extension of the receivership period.
PDIC was scheduled to bid the tranche 1 of EIB Thursday this week but this did not materialize after PDIC received a copy of the 72-hour temporary restraining order issued by the Makati City Regional Trial Court on the bidding.
The PDIC said the the TRO pertains to Civil Case No. 12-1010 entitled, "Forum Holdings Corporation, East Asia Oil Company, Inc., Pacific Rehouse Corporation, Pacific Concorde Corporation and Mizpah Holdings, Inc. v. Philippine Deposit Insurance Corporation, Bangko Sentral ng Pilipinas and Export and Industry Bank, Inc.”
None of the interested investors went to the bidding proper, making the bidding committee to declare it a failure. The first tranche involves the sale of the bank’s assets and liabilities, its existing 50 branches and additional 30 branches, all of which are in restricted areas. The central bank placed EIB under PDIC receivership after EIB officials requested the BSP to take over the bank’s operations due to insolvency issue.
EIB, which as of December 2011 had about 50,092 accounts, sent a letter to BSP to inform monetary officials that the commercial bank, which is listed with the Philippine Stock Exchange, will declare a bank holiday on April 27.
EIB is a 50-unit bank with head office in Exportbank Plaza, Chino Roces Ave. corner Sen. Gil Puyat Ave., Makati City. As of Dec. 31, 2011, the bank had total deposit liabilities of P15.98 billion.
Despite EIB’s closure, the BSP said the country’s banking system “remains sound and stable with ample liquidity and high level of capitalization.”
“The closure of EIB is not expected to adversely affect the Philippine banking system considering its relatively small size. Its total assets is equivalent to only about 0.3 percent of the total assets of the banking system,” the central bank said.*PNA