Declaring the Existence of a Concerted Political Action Undermining Stability of the Banking System

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.