The rural banks in different parts of the country declaring bank holidays in a row last month should prod lawmakers to expedite the passing of the bill doubling the maximum deposit insurance coverage, Senator Chiz Escudero last month said.
According to Escudero, “several rural banks have declared bank holidays during the month without warning their respective clients.”
Among those that closed bank last month is the Philippine Countryside Rural Bank Inc. (PCRBI) in Northern Cebu, along with its other five branches in the Cebu province. Its sister company, Pilipino Rural Bank Inc. (PRBI) declared a holiday a day earlier for its Mandaue, Argao, and Cebu branches.
Seven other rural banks which declared closure last month are Rural Banks of Parañaque Inc., San Jose Batangas Inc., Carmen in Cebu, Calatagan in Batangas, DARBCI, Kananga, Leyte and the Rural Bank of Bisayas Minglanilla.
Escudero said, these successive closures are setting on the alarm among ordinary folks who are the depositors of the rural banks all over the country and other bank depositors as well, especially with the sneaky manner by which these banks have closed.
He urged his colleagues in the Senate and his counterparts in the House to immediately approve and pass Senate Bill No. 2678 raising the maximum deposit insurance coverage per depositor and investor from P250,000 to P500,000.00.
As the author of the said bill, Escudero said, “its immediate passing is timely given the seeming volatility of the rural banking situation”.
“Most, if not all of those rural banks that closed are parts of the Legacy Group, the biggest conglomerate of rural banks in the country. These banks have yet to issue official statement thus leaving their depositors hanging as to what will happen to their hard earned deposits. Their only recourse now is going to PDIC to recover what will be left of their money.”
“With the financial crunch looming, there is a need to ensure public trust and confidence in banking and investment if only to overcome the worst nightmares of depositors which is to lose their money in a bank at that.”
The immediate passing of the bill, said, Escudero, should be done now to strengthen the foundation of the banking system and to provide the needed requirement to maintain and promote stability in the banking sector. /MP
According to Escudero, “several rural banks have declared bank holidays during the month without warning their respective clients.”
Among those that closed bank last month is the Philippine Countryside Rural Bank Inc. (PCRBI) in Northern Cebu, along with its other five branches in the Cebu province. Its sister company, Pilipino Rural Bank Inc. (PRBI) declared a holiday a day earlier for its Mandaue, Argao, and Cebu branches.
Seven other rural banks which declared closure last month are Rural Banks of Parañaque Inc., San Jose Batangas Inc., Carmen in Cebu, Calatagan in Batangas, DARBCI, Kananga, Leyte and the Rural Bank of Bisayas Minglanilla.
Escudero said, these successive closures are setting on the alarm among ordinary folks who are the depositors of the rural banks all over the country and other bank depositors as well, especially with the sneaky manner by which these banks have closed.
He urged his colleagues in the Senate and his counterparts in the House to immediately approve and pass Senate Bill No. 2678 raising the maximum deposit insurance coverage per depositor and investor from P250,000 to P500,000.00.
As the author of the said bill, Escudero said, “its immediate passing is timely given the seeming volatility of the rural banking situation”.
“Most, if not all of those rural banks that closed are parts of the Legacy Group, the biggest conglomerate of rural banks in the country. These banks have yet to issue official statement thus leaving their depositors hanging as to what will happen to their hard earned deposits. Their only recourse now is going to PDIC to recover what will be left of their money.”
“With the financial crunch looming, there is a need to ensure public trust and confidence in banking and investment if only to overcome the worst nightmares of depositors which is to lose their money in a bank at that.”
The immediate passing of the bill, said, Escudero, should be done now to strengthen the foundation of the banking system and to provide the needed requirement to maintain and promote stability in the banking sector. /MP
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