Author Topic: Another rural bank shuts doors  (Read 771 times)

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Another rural bank shuts doors
« on: January 06, 2009, 01:14:47 AM »
Another rural bank shuts doors


THE Rural Bank of Subangdaku (RBS) caught its depositors off guard when it shut down its operation yesterday morning.

This amid earlier assurance that the bank was “very stable” and that the acceptance by Bangko Sentral ng Pilipinas (BSP) of its loan application indicated its undisturbed financial strength.

Like the Legacy affiliate rural banks, RBS also posted a notice on its rolling steel door that it is on bank holiday.

RBS, however, is not part of the Legacy group, whose seven affiliate banks have earlier been placed under the receivership of the Philippine Deposit Insurance Corp. (PDIC). Four of these banks are in Cebu.

An angry Renerio, a depositor who did not give his family name, accused bank officials of serious betrayal of trust by making them believe it was financially stable.

“I have over P100,000 deposit anang bankoha. Pagka-bakakon ba ani nila…dako na hinoun kaayo kog perwisyo (They are liars),” he said.

Joseph Gaisano, one of the biggest investors in RBS, begged off from reacting to the angry comments of the depositors, saying that, like them, he and his group that invested in the bank also lost much.

He refused to confirm a report that RBS officials withdrew the bank’s loan application with the BSP, saying he does not know of any negotiation of the bank as he is not among its officers.

“I do not know anything. I was not involved in the negotiation. My group only invests,” he told Sun.Star Cebu in a phone interview.

Daniel Arcenas, president of the Cebu Rural Bankers’ Federation, said he hopes that RBS’ troubles represented “the last chapter” of the sector’s problems arising from the Legacy banks’ liquidity woes.

While RBS was not among the banks acquired by the Legacy group, reports about the Legacy banks going on a bank holiday and stopping the processing of clients’ transactions provoked a slew of withdrawals from RBS last year, Arcenas explained.

He added that around Christmas, however, all of the other rural banks in Cebu reported normal operations despite the scare, with clients returning their deposits.

Last Dec. 16, Arcenas assuaged the fears of RBS depositors following panic withdrawals in other banks saying RBS was “very stable” as indicated by the BSP’s acceptance of its loan application so it could answer demands from its clients.

Yesterday, however, Arcenas said RBS depositors should have been kept abreast of the situation when the bank began disallowing withdrawals on Dec. 16.

He also admitted that even before the Dec. 16 press conference attended by officials of the federation’s affiliate banks, RBS no longer communicated with them.

“That is the darkness of RBS. They did not even send a representative during that press conference,” he said. (AIV with reports from IDA)


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