Proclamation No. 2488, issued on February 20, 1986, by President Ferdinand E. Marcos, declares a concerted political action aimed at undermining the stability of the Philippine banking system. This action has prompted calls from certain sectors for the public to withdraw deposits from seven commercial banks. In response, the proclamation mandates the Governor of the Central Bank to provide extraordinary credit facilities to these banks to restore their financial stability and maintain public confidence. The intent is to safeguard the internal and external monetary stability of the country and support sustainable economic growth.
February 20, 1986
PROCLAMATION NO. 2488
DECLARING THE EXISTENCE OF A CONCERTED POLITICAL ACTION UNDERMINING THE STABILITY OF THE BANKING SYSTEM
WHEREAS, certain sectors of the citizenry have called upon the Filipino people to withdraw their deposits from seven (7) commercial banks, namely: Philippine National Bank, Commercial Bank of Manila, Union Bank, Security Bank and Trust Company, United Coconut Planters Bank, Traders Royal Bank, and Republic Planters Bank;
WHEREAS, it is the determination of the President of the Philippines that there exists a concerted political action to undermine the stability of the banking system of the Philippines.
NOW THEREFORE, I, FERDINAND E, MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution and the laws, do hereby proclaim and order the following:
SECTION 1. There exists a concerted political action to undermine the stability of the banking system which will compromise the internal and external monetary stability in the Philippines and hinder monetary, credit and exchange conditions conducive to a balanced and sustainable growth of the economy.
SECTION 2. To insure that the depositing public shall at all times have absolute confidence in the banking system, the Governor of the Central Bank is hereby mandated to immediately extend to the aforementioned banks the extraordinary credit facilities under Section 90-A of Republic Act No. 265, as amended, in such amounts as are necessary to cover all their deposit and deposit substitute liabilities; to restore their foreign exchange positions; and to restore their legal reserves, all to the levels as of February 16, 1986. acd
DONE in the City of Manila, this 20th day February, in the year of Our Lord, Nineteen Hundred and Eighty-Six.