Relation To Urban Bank
In the case against Urban Bank, which was ordered closed for the same reasons as Banco Filipino, Urban Bank president Teodoro Borlongan compared the case of Banco Filipino to the case of Urban Bank, which was argued on the following points:
| Banco Filipino | Urban Bank |
|---|---|
| Banco Filipino is a savings bank. | Urban Bank is a commercial bank with two subsidiaries. |
| Banco Filipino was suffering from illiquidity and was granted a 119.7 million-peso loan from the Bangko Sentral. | Urban Bank alleges that numerous negative media reports attributed to the Bangko Sentral caused its illiquidity and that it received no help from the Bangko Sentral in resolving its illiquidity. |
| Banco Filipino declared a self-imposed bank holiday on July 23, 1984 due to its illiquidity. | Borlongan and Urban Bank chairman Arsemio Bartolome III pre-cleared a bank holiday with the Bangko Sentral set for April 25, 2000. |
| Banco Filipino was not ordered closed during its bank holiday. It was put under conservatorship by the Bangko Sentral a week after its bank holiday was declared and was even given a three billion-peso credit line. | Despite provisions in Philippine banking law that deal with illiquid banks, Urban Bank was not placed under conservatorship. Instead, it was ordered closed less than 24 hours after the declaration of its bank holiday. |
| It took six months for Banco Filipino's supervision and examination sector (SES) report to be made. The SES reports were released on January 23, 1985. At the recommendation of the report, BF was ordered closed two days later. | Urban Bank's three SES reports were allegedly rushed and made "at the flick of a finger" in three hours. The reports were allegedly signed only 30 minutes before the Monetary Board meeting that would decide the fate of Urban Bank. |
| While the SES report recommended that Banco Filipino be closed on the basis of illiquidity and insolvency, the Supreme Court found that the report was based on incomplete findings. | Urban Bank and its subsidiaries were not found to be insolvent in their SES reports. It was also alleged that not only were Urban Bank's SES reports based on false information, but even its SES reports were falsely substituted and ante-dated to give the impression that the reports existed while deliberating the fate of the bank. |
| The Supreme Court found that the findings of the Monetary Board in closing Banco Filipino was not only unethical, but also questioned how a bank can resolve its financial status in four days, as well as resolve the issues surrounding the information found in Banco Filipino's SES report. | Urban Bank alleged that the Bangko Sentral did not furnish them a copy of its SES reports, so it was unable to take action against the reports' findings. It alleged that its reports were given only five months after the bank was ordered closed. Urban Bank even alleged a lack of due process on its behalf. |
| Banco Filipino requested the transcripts and records of the meetings deliberating the closure of the bank. The Bangko Sentral denied BF's request. | Subsequent amendments to Philippine banking laws require the Bangko Sentral to keep all records of all Monetary Board meetings. Urban Bank alleges that the meeting held regarding the fate of Urban Bank was not even recorded, and that no transcripts of the meeting were made. |
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