PLEASE PROVIDE RELEVANT AND SCHOLARLY DISCUSSION ON TOPICS

PRESENTED:
The Following are lists of the Top 5 Biggest failed banks in the Philippines:

 Export and Industry Bank (Export bank)

 Urban Bank
 Banco Filipino Savings Mortgage Bank
 Orient Commercial Banking Corporation
 Pacific Banking Corporation

NOTE: You have the option to identify other banks if you want if you can’t obtain information
about the listed banks above.

1. Select two (2) of these 5 failed banks and research what led or took place to their failures?

A. Export and Industry Bank

 Inability to meet its obligations as they become due, insufficient realizable assets to
meet its liabilities and its inability to continue business without involving probable
losses to its depositors or creditors.
B. Urban Bank
 Failing to meet withdrawals
2. Provide or suggest what could have done (in terms of profitability, sustainability and compliance
to laws and regulations) to avoid such failures.
In my opinion, one way that a bank could be able to grow its asset is by utilizing its
liabilities, such as deposits or borrowings, to fund assets, such as loans made to people or
companies, or the purchase of other types of investments that generate interest income. In this
manner, the owners of the bank are able to leverage their bank capital to make a far greater
return on their investment than they would be able to with the bank's capital alone.

3. What Could the BSP and PDIC have done to help them to avoid such failure?

It shall provide policy directions in the areas of money, banking, and credit. It is
obligated to have supervision over the operations of banks and to exercise such regulatory
powers as are provided by law and other pertinent laws over the operations of finance
companies and non-bank financial institutions performing quasi-banking functions.