Export & Industry Bank’s sale to BDO doesn’t push through, PDIC takes over

InterAksyon.com reports that Philippine Deposit Insurance Corp. (PDIC) on Friday, April 27, "stepped in and took over Export & Industry Bank (EIB) after a deal for the sale of its assets to the Philippines’ biggest lender, Banco De Oro Unibank Inc.’s (BDO), failed to materialize."

The Philippine Deposit Insurance Corp. (PDIC) "stepped in and took over" Export & Industry Bank (EIB) on Friday, April 27.

 

 

InterAksyon.com reports that Philippine Deposit Insurance Corp. (PDIC) on Friday, April 27, "stepped in and took over Export & Industry Bank (EIB) after a deal for the sale of its assets to the Philippines’ biggest lender, Banco De Oro Unibank Inc.’s (BDO), failed to materialize."

 

The report noted: "In a statement, the Bangko Sentral ng Pilipinas (BSP) said the Monetary Board placed EIB under receivership on April 26 because of the lender’s inability to meet its obligations as they fell due. BSP Deputy Governor Nestor A. Espenilla Jr. said EIB was faced with ₱700 to ₱800 million in maturing time deposits ’due on Friday (Apruil 27) and Monday (April 30)’ that the lender was unable to service." InterAksyon.com also added: "During the third quarter of last year, EIB’s losses swelled 35.5 percent to ₱725.22 million from the previous three-month period’s ₱430 million."

 

The report quoted the BSP, who said that despite EIB’s closure, "the overall Philippine banking system remains sound and stable with ample liquidity and high level of capitalization." In any case, TV5’s Aksyon revealed that 50,000 depositors are affected by the EIB debacle. The Aksyon report added that there is a Depositors’ Forum scheduled on Wednesday, May 2, so that people may be advised how they can go about claiming their money from the PDIC, which insures a maximum of ₱500,000.

 

For more on this story, log on to InterAksyon.com.

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