February, 02 , 2010

The Philippine Deposit Insurance Corp. (PDIC) is proposing what it calls “a seamless transition” from bank closure to liquidation thus eliminating the 90-day period of rehabilitation after bank closure.PDIC president Jose C. Nograles said that bank rehabilitation should take place during the prompt and corrective action (PCA) period when the bank is still in operation, and not after closure.

The outright liquidation of banks ordered closed by the Monetary Board (MB) is part of the package of measures PDIC is endorsing as amendments to the Bangko Sentral ng PIlipinas (BSP) charter.Sen. Eduardo J. Angara, principal sponsor of the Senate bill amending the BSP Charter, has adopted the PDIC-proposed seamless transition provision, among other proposals, as part of the committee report of the Committee on Banks, Financial Institutions and Currencies in the Senate.

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