PDIC to depositors: “Know your bank”

CEBU, Philippines — Know your bank, and have personal connection, (if possible) with the people working in the bank where money is deposited, in order to avoid untoward problems if ever a bank will undergo financial difficulties.

This is the warning reiterated by the Philippine Deposit Insurance Inc., (PDIC), as scams, or untoward incidents causing bank crisis or worst closure cannot be foretold.

In an interview with PDIC vice president for corporate affairs Jose Villaret, Jr., he said that it is imperative that every depositor should make efforts in knowing the totality of the bank he entrusted his hard-earned money to, so that he can easily sense any strange operation behavior that may lead to closure of bankruptcy.

“Before you entrust to them your hard-earned money. Know the bank and the people running it," the PDIC executive reiterated this warning as there are still a lot depositors that fall victims whenever a bank surprisingly declares "bank holiday."

At present, PDIC is managing 130 banks which are under receivership.

PDIC record showed that 27 banks which closed from 1998 to 2017 have branches in Cebu, 13 of which have head offices here.

Aside from being informed of the bank's company, and the owners and directors behind them, depositors are also reminded to refrain from putting investments in bank products which offer high yielding interest. Most of these come ons being used are "double your money," fast, among other tempting advertisements.

Despite the aggressive wise financial management awareness campaigns initiated by different financial advocates, including PDIC, more Filipinos still fall prey on scams and bank fraud, Villaret added.

Depositors, especially in today's fragile and technology-driven economy, should be very careful in where to entrust their money with. More importantly, "they (depositors) should do their homework."

Before deciding where to bank, PDIC advised that depositors should do intensive research about the company's history, reputation of the owners and board of directors, management, financial performance, and the kind of products and services it offers.

Villaret added that many Filipinos still fall prey on scams and bank fraud because they also forgot to do their “homework” which is to research about the bank’s history, management, products and services, financial status, among others.

At present, Villarete mentioned that mismanagement, insolvency and unsound business practices remain to be primary factors why banks close or are placed under PDIC’s receivership.

Regular monitoring of one's bank is as important as checking one's health, Villaret added.

PDIC held a public bidding in Cebu last week (December 8) at the Bangko Sentral Ng Pilipinas (BSP) in Cebu offering 52 properties and five motor vehicles to the public worth P32.87 million. (FREEMAN)