Malacañang today said the country’s banking system is sound and stable, and that the closure of First Savings Bank amid a bank run is an isolated case.

In his briefing this afternoon, Press Secretary and Presidential Spokesman Ignacio R. Bunye said the Philippine banking system has been strengthened by reforms over the years and could endure failure in some banks.

"We believe the banking system is very stable although we cannot prevent some failures,’ Bunye said.

Bunye assured the public that the First Savings Bank case is "more of an exception to the rule."

First Savings Bank was forced to close down due to heavy withdrawals by depositors following reports that 90 percent of its loans were non-performing.

The bank, whose clients are mostly public market vendors and other small depositors, also has a capital that has been deficient by P2 million over the last three years.

The Monetary Board has placed the bank under the receivership of the Philippine Deposit Insurance Corp. (PDIC).

This would pave the way for the immediate assumption by PDIC of the bank’s assets and liabilities, thereby facilitating the payment of its depositors.