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Closure of Export and Industry Bank

04.27.2012

The Monetary Board placed Export and Industry Bank, Inc. (EIB) under receivership on 26 April 2012 pursuant to Section 30 of Republic Act No. 7653 (The New Central Bank Act) on account of its inability to meet its obligations as they become due, insufficient realizable assets to meet its liabilities and its inability to continue in business without involving probable losses to its depositors or creditors.  Moreover, EIB wrote BSP to surrender the bank operations to the Bangko Sentral ng Pilipinas and to declare a bank holiday effective 27 April 2012. The Monetary Board invoked Section 30 of Republic Act No. 7653 (The New Central Bank Act) on account of EIB’s insufficient realizable assets to meet its liabilities and its inability to continue in business without involving probable losses to its depositors or creditors. 

The Philippine Deposit Insurance Corporation (PDIC) stands ready to service valid deposit claims from depositors of EIB and complete processing of claims as soon as possible.

The overall Philippine 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% of the total assets of the banking system.

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