Chiong wants BSP's say on Cardinal bank's real status

CEBU, Philippines – Wanting to help the depositors of Cardinal Rural Bank, Inc., the latest among rural banks in Cebu that are reported to be in deep financial trouble, Naga City Mayor Valdemar Chiong is set to write a letter to the Bangko Sentral ng Pilipinas to compel it to issue a statement on the real status of the bank.

In an interview, Chiong said that everyday, the number of angry depositors who are coming to his office to complain, has increased exponentially. He said he had already called up BSP to inquire whether or not the bank is in financial trouble, but did not get any information.

The mayor said that as advised by Hazel Pajutagana, in-charge of the CRB’s account at the BSP central office, he will write a letter to them on Monday.

Pajutagana, in an interview with The Freeman the other day, said they are not allowed to divulge any information about the bank’s status so as not to blow any situations out of proportion. She however admitted that the BSP is in “regular” communication with the bank and the depositors, including Chiong himself, can write their requests to them, if they want to get a detailed response from BSP.

During the past days, the bank has appeared to be in trouble after it has only allowed a maximum withdrawal of P200 to each of its depositors, regardless of how much his savings is.

One depositor had even threatened a bank teller to keep away from the mess if she did not want him to vent his ire on her.

As schools’ enrolments are going on, depositors have started flocking to the bank to withdraw their money only be told that they are only allowed to withdraw P200 each.

A bank employee, who refused to be named, said they are only giving that amount as they have very low collection these days. But the employee clarified that they are not a member of the Legacy Group, which have closed down several of its rural banks due to the financial crisis.

Chiong, who admitted to have been one of the stockholders of the bank when he was still a councilor in 2001, said his only wish is for the BSP to do something about the issue before any disorder erupts, especially that the depositors are now very angry at the situation.

His late brother, former Mayor Ferdinand Chiong, had also been the bank’s president during the time. But they had both sold their shares a long time ago.

Mayor Chiong also clarified yesterday’s report published in this paper that Samuel G. Enad is no longer the president and manager of the bank as the latter had already sold his shares a long time ago.

Naga City used to have four banks operating in its area, but two rural banks, both members of the Legacy Group, have already closed down, leaving the CRB and the Palawan Bank in the business. —Liv G. Campo/WAB (THE FREEMAN)