ExportBank closed due to bank holiday

Export and Industry Bank, more popularly known as ExportBank, is now closed and has been put by the Bangko Sentral ng Pilipinas (BSP) under receivership effective today, April 27, 2012.

Yesterday, April 26, ExportBank informed the BSP that it is insolvent and might be unable to meet maturing obligations and may be forced to declare a bank holiday. The Monetary Board of the BSP swiftly issued a resolution placing the bank under receivership.

The Philippine Deposit Insurance Corp. (PDIC) has taken over the bank and promised depositors refunds will be issued upon complete verification and validation of bank records.

According to the BSP, ExportBank has more than 50,000 depositors with assets reaching P25 billion. The company has more than 50 branches, mostly located in Metro Manila, and headquartered at ExportBank Drive corner Chino Roces Avenue in Makati City.

The bank’s stocks, traded at the Philippine Stock Exchange with tickers EIBA and EIBB, have been suspended since May 14, 2009.

In 2001, ExportBank merged with UrbanBank which previously declared a bank holiday in 2000.

In 2010, Philippines’ largest bank Banco de Oro (BDO) got approval from the PDIC to acquire ExportBank but the deal recently fell through.

In March 2012, ExportBank sold its 18.4% stake in property firm ArthaLand Corp. valued at P177 million in a bid to shore up liquidity.

Based on the company’s website, ExportBank is primarily owned by HongKong-based investment group Lippo China Resources Ltd., investment and financial services advisory firm AO Capital Partners Group, Austria’s third largest bank RZB, and the Philippines’ Yao Group which markets Zest-O, Beam Toothpaste, QuickChow Noodles, and RC Cola.

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