The Banko Sentral ng Pilipinas (BSP) announced that the Monetary Board, through MB Board Resolution No. 686 dated 26 April 2012, placed the Export and Industry Bank, Inc. (EIB) under receivership on 26 April 2012.
[If you’re a Pinoy Entrepreneur and had the unfortunate experience of having your capital/payroll money frozen during a bank holiday or bank closure, let others know about it through the comment section below. How should your capital be placed in banks to avoid this scenario? This would be helpful to other Pinoy Entrepreneurs.]
In placing the EIB under receivership, 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.”
For references, we’ve added a new entry at the Legal Wiki on Receivership and Liquidation of Banks (click here). Please let us know if you wish to assist in revising the entry on Receivership and Liquidation of Banks or any other entries (e.g., banks, New Central Bank Act, Financial Rehabilitation and Insolvency Act of 2010, FRIA) in the Legal Wiki. Thank you.
P.S. 30 April 2012, the Monday before May 1 Labor Day, is not a holiday (click here).