Banco Filipino: When family, business, regulators collide

Posted at Mar 20 2011 09:26 PM | Updated as of Mar 21 2011 05:26 AM

MANILA, Philippines - The Aguirres, whose family story is fit for a soap opera, has controlled Banco Filipino Savings and Mortgage Bank, which was closed by the central bank for the second time.

Lala Rimando of (this news site) has extensively covered the troubles of both the family members and the thrift bank. She shared to ANC's Business Nightly how the second closure of the bank seems like 1985 all over again, referring to the year the bank was first closed.

"It's just that the characters have changed," she said.

She also shared that the bank had mini-bankruns in the past, but the Bangko Sentral ng Pilipinas has extended emergency loans to it, staving off serious bank troubles that would have left its depositors holding the bag.

The decision of the BSP to close Banco Filipino again last March 17, 2011 came after the bank could no longer service withdrawals and fund checks because the BSP, this time, did not extend emergency loans.

Business Nightly airs on ANC at 9 p.m. weeknights.