Business & Finance

Local Banking Laws subject to Investigation

Two months ago I wrote an article regarding the closure of Export Bank and I clearly stated that Philippines doesn't have a descent bank act that protects our depositors who deserve the right to get their hard-earned money when a bank files bankruptcy. I even said that there is a Philippine banking system conspiracy behind these anomalies.

The administrator of diversityhuman.com yesterday mentioned in his article that BSP Governor Amando M. Tetangco Jr. mentioned our local economic fundamentals are sound, our banks are able to meet domestic credit needs, and we are capable of lending $1 billion from our international reserves to the IMF. It is absolutely an absurb claim. Party-list Representative Arnel Ty, a member of the committee on banks and the sectoral Representative of the LPG Marketers’ Association (LPGMA) mentioned that 41 banks were closed in the past 18 months.

In the article "Philippine Bank Closure - Facts You need to be Aware of" I highlighted some issues which are not being addressed by our current banking laws. I even said that "Our banking system is absolutely corrupt". After two months, a lawmaker urges to scrutinize and determine the adequacy of Philippine banking laws. 

“We have to ascertain whether existing laws are adequate to discourage unsafe, unsound and fraudulent banking practices, protect
depositors, promote savings, support responsible credit, and reinforce public confidence in the (banking) industry,” Ty said.

I feel better now since I am not alone in pushing the government to fix our local banking system loopholes. I find hope in Arnel Ty's campaign. I hope its outcome will turn out positive.

Here are the list of banks–closed from October 2010 to June 2012.

Rural Bank of Banayoyo (Ilocos Sur), Inc.
First Provincial Bank (A Rural Bank), Inc. May 28, 2012
Rural Bank of Gigaquit (Surigao del Norte), Inc. May 21, 2012
Rural Bank of Nasugbu, Inc. March 08, 2012
Cooperative Bank of Iloilo March 08, 2012
Rural Bank of Luna (La Union), Inc. March 08, 2012
Rural Bank of Jordan (Iloilo), Inc. February 10, 2012
Rural Bank of Calubian (Leyte), Inc. February 10, 2012
Rural Bank of Angadanan (Isabela), Inc. January 17, 2012
Rural Bank of Valencia (Negros Oriental), Inc. January 17, 2012
Rural Bank of Mawab (Davao), Inc. December 28, 2011
Rural Bank of Mabini (Batangas), Inc. November 25, 2011
LBC Development Bank (LBC Bank) November 09, 2011
First Reliance Bank [Rural Bank of Indang (Cavite), Inc.] November 03, 2011
Rural Bank of Tarlac, Inc. October 10, 2011
Bank of Calape (Savings and Mortgage Bank) October 07, 2011
Rural Bank of Garcia-Hernandez (Bohol), Inc. October 07, 2011
Rural Bank of Matanao (Davao del Sur), Inc. September 21, 2011
Express Savings Bank, Inc. September 21, 2011
Rural Bank of Tampakan (South Cotabato), Inc. September 01, 2011
Rural Bank of President Roxas (North Cotabato), Inc. September 01, 2011
Rural Bank of Tagudin (Ilocos Sur), Inc.
Rural Bank of Nabas (Aklan), Inc.
Mambajao Community Rural Bank, Inc. September 01, 2011
Banco Filipino Savings and Mortgage Bank June 08, 2011
Rural Bank of Agno (Pangasinan) Inc. May 19, 2011
GMA Rural Bank (Cavite), Inc.
Growers Rural Bank (Angono, Rizal), Inc. March 14, 2011
Rural Bank of Mapandan (Pangasinan), Inc. (RBMI) March 11, 2011
Rural Bank of Norzagaray (Bulacan), Inc. (RBNI) March 11, 2011
Rural Bank of Manjuyod (Neg. Or.), Inc. March 01, 2011
Rural Bank of Bingawan (Iloilo), Inc. February 17, 2011
Rural Bank of Zapote (Las Pinas), Inc. February 16, 2011
Rural Bank of Sta. Rosa (Nueva Ecija), Inc. January 25, 2011
Ibalon Rural Bank (Tabaco, Albay), Inc. January 25, 2011
Rural Bank of Baler (Aurora), Inc. (RBBI) January 18, 2011
First Country Rural Bank (Pasig City), Inc. January 10, 2011
Assemblyman Rafael B. Legaspi Rural Bank of Aklan, Inc.. (Assemblyman Rafael B. Legaspi RB) November 11, 2010
Rural Bank of Ayungon (Negros Oriental), Inc. (RB Ayungon) October 21, 2010
Rural Bank of Lagonoy (Camarines Sur), Inc. (RB Lagonoy) October 21, 2010
Rural Bank of Hinigaran (Negros Occidental), Inc. (RB Hinigaran) October 21, 2010

Source: GMA news