PDIC Takes Over a Rural Bank

Last Update: April 14, 2019

Last month one of the Rural banks in my location was taken over by the PDIC which shocked all the bankers and were concern about how they could withdraw their deposits from thousands to millions (pesos, the Philippine currency). Philippine Deposit Insurance Corporation (PDIC) is a government-run Philippine deposit insurance fund.

I've known information through hearing that a certain bank had closed and people with millions of money deposits were not able to refund because PDIC can only answer five hundred thousand pesos per account.

This time it's not only through hearing but we are directly involved. Why? The church where I am serving has happen to have a deposit with over a hundred fifty thousand pesos intended for building fund which they have saved for about five years.

How did this happen?

The policy is this: Membership of banks to PDIC is mandatory; hence, all operating banks are members of PDIC.

PDIC exists to protect depositors by providing deposit insurance coverage for the depositing public and help promote financial stability.

It happened that this Rural Bank of Mabitac is not a member of the PDIC and there were rumors that it had been twice that millions of deposits have been in a reckless and foolish manner. It may have been reported to the PDIC.

So to protect the depositing public the PDIC arrived and ordered the closure of the bank. We may wonder how would the depositors with millions in an account refund to the exact amount since PDIC can only guarrantee 500 thousand pesos of each depositor.

This week is the last opportunity for the depositors to claim their refund because next week the PDIC will no longer settle transactions with anyone in the local area. They will entertain transactions in their office in Manila. But people are now being assured they receive checks for their refund in the nearest Land Bank and Philippine National Bank.

Business Deterrents

We have heard one of the offline business deterrents which awefully shocking and a concern of every individual who are hard working in order to save for the future.

What are the probable deterrents of online business?

1. Filled with Technical issues-some of these can be managed by the site owners such as plugin installation, activation and deactivation. If a certain plugin raises an issue we can deactivate it. But their are issues that are beyond our control which are solely in the hands of the web host.

2. Infested with Online Burglary-Thieves can forcibly enter or ransact the store, a home, or a building just to steal. So with the online business there are ways wherein sites are being hacked and if not addressed quickly what you have worked for years will just be a waste.

3. No SEO Skills-This is the first thing a site is where to be, Search Engine Optimization. The ability of your site to appear organically in Bing, Yahoo, and Google search. It does have a close connection to paid ads. If our articles is not competitive in rank we cannot have traffic and nobody will see our paid ads. So we have to learn the skills of doing SEO and WA teaches that.

4. No time for Business-In the off line business even if your store house is filled with goods if you don't have time to open it and attend to the consumers and sell them your business will not grow. It is so with online business we have to invest time, fill it with content for people to visit. Educate, abreast and inform people.

This is what I newly assimilated here in WA: Do not sell but just inform your target group of the product it's up for them to decide. So you are helping people to have the right decision in their life in acquiring such a product of whatever kind it is.

Join the Discussion
Write something…
Recent messages
Dhind1 Premium
Sorry - but it has to be said - All banks are crooks.

It seems necessary evils, but still crooks.

Very unfortunate for those involved.
Reply
accad Premium
I seem to agree but I would give the benefit of the doubt to some. But we should be keen enough to know if the bank where we are saving our money are members of such insurance company, in my case, the PDIC.
Reply
Dhind1 Premium
Definitely, we need to insure ourselves as much as possible for loss in any form. Many countries have federal; insurance for savings accounts. Normally the insured amount is not as much as we would like it to be, but we should ensure that the accounts that we have do actually have insurance.
While I would also like to give the benefit of the doubt to banks and bankers in general, there are just oo many stories about average hard working people losing their money to the fat cat owners and leaders. Not to mention how the banks just take every penny that we have for fees at every opportunity.

Enough of a rant for today. Good article. Thank you.
Reply
MThompson3 Premium
And it is going to happen in america very soon.
Reply
Dhind1 Premium
Unfortunately, I would agree.
Reply
accad Premium
Now I know that even in your own country people have experienced this kind of scam. It is really a universal one so it must give us and the people to be more cautious in our decisions when it comes to the fruit of our labors.
Reply
MThompson3 Premium
Swiss offshore banks is the only way to go. Caribbean island countries make the best tax havens. My wife's divorce lawyer is still looking for my money. lol

Mark
Reply
accad Premium
I heard that that's where the amassed treasures have been hidden for a long time. A safe place to hide, lol.
Reply
RosanaHart Premium
Do let us know how it turns out, please.
Reply
accad Premium
So far, Rosana, most of the savings of the bankers are now being processed and are accordingly paid. I only don't know those who have millions.
Reply
FKelso Premium
What an unfortunate thing with the bank...makes you wonder what the next step will be.
Reply
accad Premium
That's true. The good thing about it is that the PDIC is kind enough to help the bankers.
Reply