City may hold forum on bank closure

CEBU, Philippines - The Cebu City Government offered anew a venue for the affected Cebu City depositors of the recently closed Export and Industry Bank to help them connect with the Philippine Deposit Insurance Corporation (PDIC) for their claims.

City Hall consultant and lawyer Janeses “Jade” Ponce said that they are willing to hold a forum with the PDIC representatives, the affected depositors and hopefully the Bangko Sentral ng Pilipinas (BSP).

Ponce said that BSP ought to explain to the public the closure of at least three banks in three years.

“We want to hear from the Bangko Sentral why are these closures happening. How can they assure the public that it will not happen again?” Ponce said.

The closure of at least three banks in three years can be alarming, he said.

“One bank closed down is alarming. Two banks is a serious concern. But three banks in less than three years is a tragedy. Banks closing down is not just the concern of affected depositors. It is everyone’s,” Ponce said.

“At the heart of a successful economy is one word – confidence. These incidence of bank closures in less than two years does not inspire confident in our government regulators,” he added.

This is why BSP must explain to the public why are these closures happening. He said the BSP must also assure the public that it is doing its part in protecting the public’s deposits.

Almost two weeks ago, the BSP closed down and placed under the receivership of PDIC the Export and Industry Bank due to insufficient realizable assets. The bank is already insolvent, according to the BSP assessment. Its assets of P25 billion is inadequate to meet its liabilities.

There are two branches of Export Bank in Cebu.

Last year, many Cebuano depositors were also affected by the closure of Banco Filipino Savings and Mortgage Bank. It was also last year when the LBC Development Bank with one branch in Cebu was closed down by BSP and put under PDIC receivership. — (FREEMAN)