The Supreme Court has upheld the decision of the Court of Appeals to restore AMA Rural Bank of Mandaluyong to full operational status.
The High Court’s First Division rejected the petitions of the Bangko Sentral ng Pilipinas and the Philippine Deposit Insurance Corporation to overturn the CA ruling, which ordered the BSP to restore the bank’s full operational status and for the PDIC to return all seized assets and records.
While the Monetary Board of the BSP has the power to close banks, the Supreme Court stressed that its exercise of police power is subject to judicial review.
The BSP’s claims that AMA Bank cannot continue business due to chronic losses and chronic capital deficiency are not supported by the records as AMA Bank has been earning net income from 2015-2019, according to the Supreme Court.
The Supreme Court also found no premeditation, malice or evil intent on the part of AMA Bank in relation to its alleged violations of the cease-and-desist order issued by the BSP.
