Another Cebu bank in financial trouble

CEBU, Philippines – Another rural bank in Cebu has been reported to be mired in deep financial trouble.  

Cardinal Rural Bank Inc. (CRB), based in the southern town of Naga, has been allegedly giving only P200 to each of its depositors who are withdrawing their money.

But the Bangko Sentral in Pilipinas (BSP) refused to issue a statement on the status of CRB, saying only that it does not want the issue to be “blown out of proportion.”

“Being a supervisory authority, we are now allowed to divulge any information that can affect kahit kanino. Because we don’t want everything to be blown out of proportion,” said Hazel Pajutagana, who is in charge of the CRB’s account at the BSP.

Pajutagana, however, said that depositors could always write to them to inquire about the status of the bank.

Asked if they were only protecting the bank by not issuing any statement this early, Pajutagana maintained that they are “not allowed” to confirm or deny the rumor.

She said they don’t want to be “judgmental” which can only jeopardize the bank’s operation.

Many depositors of CRB have been worried that the bank is on the way to bankruptcy after it started giving P200 for every withdrawal.

Naga Mayor Valdemar Chiong has also been worried about the situation that he already called up the BSP, which refused to act on the issue.

Chiong said that the BSP should take “swift action” on the matter. He said if the CRB is indeed mired in financial trouble, then it should help the bank’s depositors.

The mayor said that the bank’s depositors have been going to his office everyday since last month complaining that they cannot withdraw more than P200, the maximum amount allowed by the bank.

CRB, located along San Francisco Street, barangay Poblacion, is being managed by Samuel G. Enad, who is also the bank’s president.

Enad was not around when contacted by The FREEMAN for his side yesterday.

The bank is a member of the Rural Bankers’ Association of the Philippines

An employee of the bank who refused to be named said they have started regulating the limited withdrawal following the bankruptcy of the Legacy group of rural banks. CRB is, however, not part of the Legacy group.

The employee added that the allowable amount to be withdrawn is based on their daily collection. — LPM (THE FREEMAN)