Saturday, December 13, 2008

Risking depositor's money

I would like to thank my very good friend Louie Clam for her email. I received it this morning. She was once my officemate in PIRB back then and now she is connected with Waterfront Cebu. She used to be my most trusted friend. I guess all is well with her now that she found her new home. I hope she will soon realize her dream to work here in Dubai. How soon? When the right time come.

Anyway, I was bothered by her email. She told me that PCRB was on the headline with Sun Star Cebu – declaring a bank holiday. What is a bank holiday by the way? Not all depositors have a good understanding of what this means. Bank holiday would mean, the bank celebrates a foundation or fiesta or the bank closes permanently. These were the only visible options. I have made my assessment. How about you?

I am concern with PCRB, with its people who had been my officemates. This was my first duty after I graduated college. But I am more concern with the depositors. They have entrusted their money for safekeeping hoping that it will be usable in times of difficulties, in times when they need to pay for their children’s tuition. What will happen to them now? For those who deposited more than 250,000 pesos, they must be in despair. The insurance is willing to pay only up to 250,000 pesos. For small depositors, they can get all their money back. But the procedure is tight. They have to wait at least three months before they will be settled. The central bank will investigate the bank and if proven to be not capable to resume its operation, it will be put under the custody of PDIC.