Which were the biggest Philippine banks that failed?
Based on total assets just before they were closed down, the biggest Philippine bank that failed was Export and Industry Bank.
1. Biggest –>> Export and Industry Bank, a commercial bank
Export and Industry Bank Inc., also known as Exportbank, had 28.75 billion pesos in total assets as of June 2011, almost a year before it was closed on April 26, 2012 by the BSP. The June 2011 statement was its last published financial statement on the BSP website. It had 50,052 depositors and 50 branches.
Of the 38 Philippines commercial/universal banks listed and ranked by the BSP as of March 2011 on its website, Export and Industry Bank was No. 29 in total assets, with 30.028 billion in total assets as of March 2011.
The day before it was closed down by the BSP, Exportbank wrote a letter to the BSP, saying that it was surrendering its banking license and that it was declaring a bank holiday effective April 27, 2012.
Exportbank acquired the failed Urban Bank in 2001. Urban Bank was placed by the BSP under receivership on April 26, 2000. Their merger became effective on February 1, 2002.
2. 2nd Biggest –>> Urban Bank, a commercial bank
The next biggest Philippine bank that failed was Urban Bank Inc., closed down by the BSP on April 26, 2000, the day after Urban Bank unilaterally declared a bank holiday on April 25, 2000. It had 15 billion in total assets before its collapse. After it was closed down, it was acquired by Export and Industry Bank in 2001, with the merger becoming effective on February 1, 2002.
3. 3rd Biggest –>> Banco Filipino Savings Mortgage Bank, a thrift bank
When Banco Filipino Mortgage Bank was closed down on January 25, 1985, it had 4.95 billion in total assets, based on the Tiaoqui report dated January 23, 1985. At that time, it was the most popular and biggest thrift bank in the country.
Banco Filipino filed several cases against the then Central Bank of the Philippines, challenging its actions regarding the operations of Banco Filipino.
Banco Filipino was allowed to operate again in June 1992. On March 17, 2011, it was again placed under receivership, as it “was no longer able to settle its obligations.” It had 11.77 billion in total assets and 23.03 billion in liabilities.
4. 4th Biggest –>> Orient Commercial Banking Corp., a commercial bank
Orient Commercial Banking Corp. was closed down on October 14, 1998.
In December 1997, Orient Bank had total assets of 7.8 billion and 52 branches, according to the study “Philippine Corporate Governance: Issues and Reforms,” by Erlinda S. Echanis.
Orient Commercial Banking Corp. was formerly Bangko Silangan Development Bank.
Banco Filipino Savings and Mortgage Bank v. The Monetary Board, Central Bank of the Philippines. G.R. No. 70054. (1991, December 11). Retrieved from the Arellano Law Foundation’s The LawPhil Project: http://www.lawphil.net/judjuris/juri1991/dec1991/gr_70054_1991.html
Closure of Export and Industry Bank. (2012, April 27). Retrieved from
The Closure of Urban Bank. (2003, August 28). Retrieved from http://www.bsp.gov.ph/publications/media.asp?id=600
UBI was placed under receivership the day after it declared a bank holiday.
Keeping Faith in the Face of Adversity. (2003, August 28). Retrieved from http://www.bsp.gov.ph/publications/speeches.asp?id=84&yr=2003
Philippine Bank Closure. (1985, July 8). The New York Times. Retrieved from http://www.bsp.gov.ph/publications/media.asp?id=2861