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and Soriano
v.
Monetary Board Bangko Sentral ng Pilipinas and PDIC
G.R. No. 150886
February 16, 2007
Facts:
The Rural Bank of San Miguel is a domestic banking corporation in the Philippines with 15
branches in Bataan, with Soriano as its major stockholder. It was placed under receivership by
the Monetary Board with PDIC as receiver, and later on for closure due to the inability of the
bank to pay its liabilities. It was found out that the bank has been unable to meet its depositor’s
demands, failure to replenish its special clearing demand deposit with DBP, several emergency
loans made with BSP, and declaration of a bank holiday. The bank and its stockholders protested
the closure assailing that the Monetary Board acted with grave abuse of discretion by ordering
the closure without a complete examination being conducted, and filed a petition with the CA.
CA denied the petition, which allowed the PDIC to proceed with the liquidation of the bank, hence
this petition.
Issue: Whether or not the New Central Bank Act require a current and complete examination of
the bank before it can close and place the bank under receivership.
Ruling: No.