BSP announces Export Bank Inc. closure

Thea Alberto-Masakayan
Yahoo! Southeast Asia Newsroom

Export and Industry Bank Inc (EIB) is now on a bank holiday, following its "inability to meet its obligations," the Bangko Sentral ng Pilipinas said Friday.

In a statement, BSP said the Monetary Board has placed EIB "under receivership" for its inability to further operate "without probable losses to its depositors or creditors."

EIB has already agreed to "surrender" its operations to the BSP, the central bank added.

BSP said the Philippine Deposit Insurance Corporation (PDIC) is ready to "service valid deposit claims from depositors of EIB," as well as to process claims the soonest possible.

BSP also allayed fears of PH banks' stability amid EIB's closure, noting that the entire 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," BSP added.