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Banco Philippine Overview * 1964, Banco Philippine was established. * 1965, Banco Philippine fructify out to leave its mark as an innovator, by conceiving the first all-woman depository financial institution branch. * 1969, Banco Philippine Became the first bank to process online minutes in real time, giving customers the ability to deposit in any online Banco Filipino branch. * 1966 to1985, Banco Filipino was the largest savings bankin the Philippines. * In 1970, Banco Filipino started expanding into the countryside with its first provincial branch opening in Naga City. 1972, the banks customer mean(a) grew to one million customers, even in the midst ofmartial law. * 1975 It was voted the virtually preferred bank inMetro Manila. * For most of the 1980s, Banco Filipino would remain closed, * January 25, 1985, even though Banco Filipino was performing well and was seen by most people as a very healthy bank, theBangko Sentral ng Pilipinasordered its closure over alleged insol vency. * 1991 ruling made by theSupreme Courtstated the banks closure illegal.Banco Filipino subsequently reopened, albeit completely with fifteen of its original 92 branches. * For much of the remaining 1990s, Banco Filipino would be busy trying to reestablish itself. * 1995 It became a member of BancNetafter open the BF Cash Card and issued its firstcredit card, aVISAcard. * 1997 cardinal years later, BF shares were re-listed on thePhilippine Stock Exchange, * 1999 the Supreme Court declared that Banco Filipino is entitled to damages payments caused by its illegal closure. 2009, the Makati RTC ordered the Bangko Sentral and the financial Board to immediately implement the banks approved railway line plan by releasing P25 in billion financial economic aid and a package of regulatory relief, which was affirmed by the appellate court of justice in 2008. * March 17, 2011 The Bangko Sentral ng Pilipinas (BSP) ordered the closure of Banco Filipino savings and Mortgage Bank and pl aced it under the receivership of state-run Philippine Deposit insurance Corp. (PDIC), saying its liabilities topped its assets by P8. 4 billion. Analysis of the case line of work areas The officers of Banco Filipino mismanaged money entrusted to them by their depositors by its continued lavish spending. * Banco Filipino allowed loans to remain unpaid, including billions in overdue loans granted to its stockholders, officers, and related companies * To set funds, Banco Filipino lured depositors with chase judge way above the prevailing market rates which made their interest expense loftyer than its income. * Banco filipinos loans became overdue which means their principal and interest remained unpaid. Recommendations or Proposed Solutions The board of directors should have their cozy control tighter especially in spending expenses. They should have established replete(p) system regarding cost spending, for instance they could have develop a concourse that would review if th e money is properly allocated. * The company should have set up policies that concerns granting loans to its stockholders, officers and related companies. They also should have a department or citizens committee that would review the position of loans, if it is becoming overdue. * The bank should have reviewed the way that they raise their fund and search for a better strategy.Luring depositors by giving high interest rates was a huge mistake. It is one of the major mistakes that the bank had made. It made the interest expense higher than the proceeds that they are accumulating. * Banco Filipino should have created a better control or system in paying their loans and interest to the Banko Sentral ng Pilipinas and other creditors. They should have also set up a team who would oversee the progress of their borrowings that could have prevented the interest and principal unpaid. Banco Filipino Case Analysis By Montiel, Karen Patricia T. AC09404