Urban Bank (

PSE PSE may refer to: Companies and organizations Stock exchanges *Pacific Stock Exchange, stock exchange in USA * Pakistan Stock Exchange, stock exchange of Pakistan * Palestine Securities Exchange, stock exchange in Palestine * Philippine Stock ...

: UBI), also known by its initials (and

ticker symbol A ticker symbol or stock symbol is an abbreviation used to uniquely identify publicly traded shares of a particular stock on a particular stock market. In short, ticker symbols are arrangements of symbols or characters (generally Latin letters ...

) UBI, was a middle-sized

bank A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets. Because ...

in the

Philippines The Philippines (; fil, Pilipinas, links=no), officially the Republic of the Philippines ( fil, Republika ng Pilipinas, links=no), * bik, Republika kan Filipinas * ceb, Republika sa Pilipinas * cbk, República de Filipinas * hil, Republ ...

. The bank, along with its two subsidiaries, declared a voluntary bank holiday for failing to meet withdrawals and was consequently closed by the

Bangko Sentral ng Pilipinas The Bangko Sentral ng Pilipinas (; commonly abbreviated as BSP in both Filipino and English) is the central bank of the Philippines. It was established on July 3, 1993, pursuant to the provision of Republic Act 7653 or the New Central Bank Act ...

and put under the mandatory receivership of the

Philippine Deposit Insurance Corporation The Philippine Deposit Insurance Corporation ( fil, Korporasyon ng Segurong Deposito ng Pilipinas, abbreviated as PDIC) is a Philippine government-run deposit insurance fund. It was established on June 22, 1963, by Republic Act 3591. It guarant ...

on April 26, 2000. It merged with

Export and Industry Bank Export and Industry Bank (EIB) (formerly ), also known as Exportbank, was a commercial bank in the Philippines. It acquired Urban Bank in 2001 after the former collapsed due to its closure by the Bangko Sentral ng Pilipinas. It formed in 1996 by t ...

in 2001.

History

Urban Bank was incorporated on July 8, 1980, as a private

development bank A development financial institution (DFI), also known as a development bank or development finance company (DFC), is a financial institution that provides risk capital for economic development projects on a non-commercial basis. , total commitme ...

. Later that year, the bank opened as a one-branch thrift bank in what is today

Pasig Pasig, officially the City of Pasig ( fil, Lungsod ng Pasig), is a 1st class highly urbanized city in the National Capital Region of the Philippines. According to the 2020 census, it has a population of 803,159 people. It is located along the ...

. In 1987 it became the first non-commercial bank to list on the

Manila Stock Exchange The Philippine Stock Exchange, Inc. ( fil, Pamilihang Sapi ng Pilipinas; ) is the national stock exchange of the Philippines. The exchange was created in 1992 from the merger of the Manila Stock Exchange and the Makati Stock Exchange. Includin ...

and the

Makati Stock Exchange Makati ( ), officially the City of Makati ( fil, Lungsod ng Makati), is a 1st class highly urbanized city in the National Capital Region of the Philippines. Makati is the financial center of the Philippines; it has the highest concentration ...

(now the

Philippine Stock Exchange The Philippine Stock Exchange, Inc. ( fil, Pamilihang Sapi ng Pilipinas; ) is the national stock exchange of the Philippines. The exchange was created in 1992 from the merger of the Manila Stock Exchange and the Makati Stock Exchange. Includin ...

) under the ticker symbol UBI. After its closure and subsequent merger with Export and Industry Bank, Urban Bank shares were re-listed on the PSE under Exportbank's ticker symbol
EIB
In 1995 it became the first Philippine bank to issue SEC-registered asset-backed-securities. In early 2000 it nearly concluded a merger with a smaller rival, Panasia Bank, only to fail after the BSP set new requirements on bank mergers. On April 25, 2000, the bank declared a

bank holiday A bank holiday is a national public holiday in the United Kingdom, Republic of Ireland and the Crown Dependencies. The term refers to all public holidays in the United Kingdom, be they set out in statute, declared by royal proclamation or held ...

to put a stop to

panic withdrawal Panic is a sudden sensation of fear, which is so strong as to dominate or prevent reason and logical thinking, replacing it with overwhelming feelings of anxiety and frantic agitation consistent with an animalistic fight-or-flight reacti ...

s. Less than twenty-four hours after the declaration of a voluntary bank holiday, and as a legal consequence of this, the BSP's Monetary Board ordered the

summary closure may refer to: * Abstract (summary), shortening a passage or a write-up without changing its meaning but by using different words and sentences * Epitome, a summary or miniature form * Abridgement, the act of reducing a written work into a sho ...

of the bank. After failed merger negotiations with the

Bank of Commerce Bank of Commerce, commonly known as BankCom, is a universal bank in the Philippines and is licensed by the Bangko Sentral ng Pilipinas (BSP). Bank of Commerce is an affiliate of San Miguel Corporation (SMC). Bank of Commerce has a network of 1 ...

, in August 2001 Urban Bank shareholders approved a merger of Urban Bank and Urbancorp Investments with

that left Exportbank as the surviving entity.

The charges

Investigation Slip No. 1217

Investigation Slip No. 1436

Investigation Slip No. 1512

The judge, Zeus Abrogar, dismissed the charges against two of the defendants, Arsenio Bartolome III and Corazon Bejasa, who had been chairman and company secretary respectively, but found

probable cause In United States criminal law, probable cause is the standard by which police authorities have reason to obtain a warrant for the arrest of a suspected criminal or the issuing of a search warrant. There is no universally accepted definition or f ...

against the remaining respondents.

Supreme Court final ruling

On April 18, 2008, the

Supreme Court of the Philippines The Supreme Court ( fil, Kataas-taasang Hukuman; colloquially referred to as the ''Korte Suprema'' lso used in formal writing is the highest court in the Philippines. The Supreme Court was established by the Second Philippine Commission on Ju ...

2nd Division the reinstatement of a PHP 4.5 billion (US$109 million) estafa case against executives of the bank including Nida S. Santos, Milagros Santiago, Rowena Punzalan, Chulla Formanes, Loida O. Payonga and Amalia Ordas.Gmanews.tv
"Supreme Court upholds litigation for P4.5-B bank estafa case"

External links

Urban Bank

References

{{Reflist Companies based in Makati Defunct banks of the Philippines Bank failures Banks established in 1980 1980 establishments in the Philippines Banks disestablished in 2001 2001 disestablishments in the Philippines