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How much do you trust the local banks? Do you still maintain accounts in your native country?


MarinePride

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So far so good but a word of caution on threads like this in an open forum. You never know who might be reading about your finances & where your nestegg is kept.

 

 

 

you mean we can expect strange girls to send us naked pictures ?? yippie...

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I keep my US bank account and have direct deposits sewnt there and write checks to bnk here every month.I do have son's SS check sent to bank here. Never hear it mentioned on here, but we bank with B

I'll be keeping the bulk of my cash in US banks after reading this, just like I have been doing. I just wanted to get a feel for what members of this forum are thinking when it comes to this subject.

I wasnt making a claim, i was updating my knowledge about how the system works .lol The principle is NOT the same here- not in theory- and most certainly not in practise !! There is a huge amount of

tom_shor

I have local accounts so I have some money available right away but the bulk is elsewhere.

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Davaoeno

I asked my bank manager today [ BDO] about making a PDIC claim. She says that it is very hard to make a claim because they want complete documentation- which means that they will not accept entries just in your pass book- they want to see copies of each and every deposit slip .!!

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I keep my US bank account and have direct deposits sewnt there and write checks to bnk here every month.I do have son's SS check sent to bank here.

Never hear it mentioned on here, but we bank with Bank of Commerce which is owned by the San Miguel Corp and I dont think they are going under any time soon. since I dont have much money don't have to worry about being over the 500000 mark.

Bll

 

Even banks owned by large Philippine companies go under. Consider LBC Bank which recently went under (see story below). When other countries', like Australia, guarantee deposits to the tune of $250,000, how much faith would you have in a bank where the government insures it's banks for only $11,000? I'd have a Philippine account for convenience only, and keep a minimal sum of money there.

 

 

Another Bank Bites the Dust: LBC Development Bank

 

 

How safe is your money in the bank? We previously asked this question and a large majority answered that that they feel their money is safe in the bank. Still, it's normal for depositors to feel a bit nervous every time a bank encounters liquidity problems. Recently, the Philippine Deposit Insurance Corporation (PDIC) announced that it has placed the LBC Development Bank, a unit of the LBC Group, under receivership, pursuant to the 9 September 2011 resolution of the Bangko Sentral ng Pilipinas (BSP) Monetary Board (MB Resolution No. 1354).

In a news release, the PDIC noted that in addition to the head office in Makati City, LBC Bank has 19 branches all over the Philippines. The total deposit liabilities of LBC Bank, as of 30 June 2011, is estimated at P6.09 billion, with insured deposits amounting to P3.73 billion (99.4% of the 321,516 accounts). The PDIC has requested depositors to await further instructions on the claim procedures.

The PDIC assured depositors that "all valid accounts and deposit insurance claims will be paid as soon as possible." Deposits are ensured or guaranteed only until P500,000. Any excess amount shall await the full liquidation of the bank to see if there's enough left.

The PDIC, as the receiver, took over LBC Bank on 9 September 2011, with the responsibility to "gather, verify and validate all bank records and administer and preserve its assets for the benefit of all creditors."

Edited by abw
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turbo black

I have an account with PNB for 3 years now,main bank in the USA. so i exchange dollars to pesos

at pnb. recently a gentlemen from denmark told me pnb is taking advantage of you.they charge you a

fee to exchange your dollars.i think it is 0.4 of the exchange rate.he stated next time go in and demand

they call the central bank of the philippines and get the rate from there.

i did and guess what the rate was much higher then the bank rate.pnb stated to me sir you can only do this

with 2 thousand or more.i said to them why did you not tell me this from the beginning,all faces turned red

with no comment.thanks ollie, i hope this helps someone else!

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Stranded Shipscook

At the uppermost level i had 8 million php cash ( Yr. 2000) on two Philippine banks ( PCI, now BDO and China Bank ) I didn't use any real foreign banks due to Bank Secrecy issues. I did not want the German Government to know my cash flow. or have access to it, as i was never sure whether the Tax guys still want money or not. After selling my company it was a major problem for me. Not anymore now, but then.

 

Generally speaking, one can "trust" no Bank at all in the world. I do not need to explain that, right ? But we are not walking in those high cash situations anyway. Anybody who got more than 1 million US knows what to do anyhow.

 

Now to the practical tip for those 3rd world banks here.

 

a.) Do NOT trust any small rural bank, they are always go 'bankrupt" . NEVER trust them !

 

b.) Large local banks are ok. . Namely Unionbank ( Aboitiz ) Metrobank, BDO (even when they always change name and are owned mostly foreign), PNB, RCBC,

 

c.) If you have more than 250 PhP cash in one account, use other accounts in other banks as well. Also comes in handy when you need more cash via ATM.

 

If you run out of available 250 PhP cash accounts in assorted banks, you are a lousy investor !!!!!

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MarinePride

I'll be keeping the bulk of my cash in US banks after reading this, just like I have been doing. I just wanted to get a feel for what members of this forum are thinking when it comes to this subject. My thinking now reverts back to this, "Why would the banks be any different than anything else here?"

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We also keep most of our assets in the US Financial systems. We have had a HSBC Account but found it was of little benifit to us, we currently have a BPI account which is useful, but we still have not tried depositing a check into the BPI account to see how fast it clears... I think we will do that in OCT.

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I asked my bank manager today [ BDO] about making a PDIC claim. She says that it is very hard to make a claim because they want complete documentation- which means that they will not accept entries just in your pass book- they want to see copies of each and every deposit slip .!!

 

Why would you file a claim with PDIC, unless the Financial Institution failed?

 

In the US what FDIC would do is try to sell the failed bank to another financial institution that would manage the new accounts. You as a customer of the new bank, could withdraw your money from them.

 

If no buyer can be found, then FDIC would pay claims, usually within a few days of the request -

 

Granted it will take longer in the Philippines, but I believe the principle would be the same - PDIC would try to find a buyer of the failed bank and move the accounts to the new bank.

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Even banks owned by large Philippine companies go under. Consider LBC Bank which recently went under (see story below). When other countries', like Australia, guarantee deposits to the tune of $250,000, how much faith would you have in a bank where the government insures it's banks for only $11,000? I'd have a Philippine account for convenience only, and keep a minimal sum of money there.

 

 

Another Bank Bites the Dust: LBC Development Bank

 

 

How safe is your money in the bank? We previously asked this question and a large majority answered that that they feel their money is safe in the bank. Still, it's normal for depositors to feel a bit nervous every time a bank encounters liquidity problems. Recently, the Philippine Deposit Insurance Corporation (PDIC) announced that it has placed the LBC Development Bank, a unit of the LBC Group, under receivership, pursuant to the 9 September 2011 resolution of the Bangko Sentral ng Pilipinas (BSP) Monetary Board (MB Resolution No. 1354).

In a news release, the PDIC noted that in addition to the head office in Makati City, LBC Bank has 19 branches all over the Philippines. The total deposit liabilities of LBC Bank, as of 30 June 2011, is estimated at P6.09 billion, with insured deposits amounting to P3.73 billion (99.4% of the 321,516 accounts). The PDIC has requested depositors to await further instructions on the claim procedures.

The PDIC assured depositors that "all valid accounts and deposit insurance claims will be paid as soon as possible." Deposits are ensured or guaranteed only until P500,000. Any excess amount shall await the full liquidation of the bank to see if there's enough left.

The PDIC, as the receiver, took over LBC Bank on 9 September 2011, with the responsibility to "gather, verify and validate all bank records and administer and preserve its assets for the benefit of all creditors."

 

Conversion Rates aside, Deposit Insurance is usually a per account deal - if you have $1 Million - split it up into four accounts of $250K each or better yet - go to four different banks....

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Davaoeno

 

Why would you file a claim with PDIC, unless the Financial Institution failed?

 

In the US what FDIC would do is try to sell the failed bank to another financial institution that would manage the new accounts. You as a customer of the new bank, could withdraw your money from them.

 

If no buyer can be found, then FDIC would pay claims, usually within a few days of the request -

 

Granted it will take longer in the Philippines, but I believe the principle would be the same - PDIC would try to find a buyer of the failed bank and move the accounts to the new bank.

 

I wasnt making a claim, i was updating my knowledge about how the system works .lol

The principle is NOT the same here- not in theory- and most certainly not in practise !! There is a huge amount of info available re the Legacy failure, which if you read it i believe will back up what i originally posted !

Your post lures people into a false sense of security that just does not exist . Any payouts here do not take days- they take years ! If they are paid at all As i said- walk into PDIC with your deposit book in your hand - and w/o all the actual deposit slips- and you WILL walk out empty handed.

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I wasnt making a claim, i was updating my knowledge about how the system works .lol

The principle is NOT the same here- not in theory- and most certainly not in practise !! There is a huge amount of info available re the Legacy failure, which if you read it i believe will back up what i originally posted !

Your post lures people into a false sense of security that just does not exist . Any payouts here do not take days- they take years ! If they are paid at all As i said- walk into PDIC with your deposit book in your hand - and w/o all the actual deposit slips- and you WILL walk out empty handed.

 

Ian,

 

I didn't say it would take days in the Philippines - it takes days in the US, if a Buyer for the failed bank cannot be found.

 

The principle is the same in the Philippines - they first try to find a buyer for the failed bank - if that does't work, they will allow you to file a claim and as you say could take years -

 

Bottom line - keep most of your assets in institutions that the likelihood of a failure is minimal - i.e., BDO, BPI, Metrobank etc. and in your home country.

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Stranded Shipscook

I'll be keeping the bulk of my cash in US banks after reading this, just like I have been doing. I just wanted to get a feel for what members of this forum are thinking when it comes to this subject. My thinking now reverts back to this, "Why would the banks be any different than anything else here?"

They aren't so much different actually.

Because banks all over the world "tick" the same way. Regulations are set the same way and the motivation of its owners is the same.

The misconception is that we get often blinded by news about greedy and corrupt politicians, bad characters of the very poor part of the population.

In reality the big business, (SMC to name one we all know) and the established big Banks are not different from any other in the world.

When we make our judgement in a negative way, it is caused by the "fly by" financial institutions and the headlines of political business scandals. And of course by some insignificant (in the big picture, personal it appears larger of course) wifes/gf/family rip offs or scams.

 

But one can hardly judge a nation by its crooks.

 

Under this aspect we would have to absolutely doom the Western world looking at all the Banking and other Scandals there. Correct ?

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Davaoeno

 

Ian,

 

I didn't say it would take days in the Philippines - it takes days in the US, if a Buyer for the failed bank cannot be found.

 

The principle is the same in the Philippines - they first try to find a buyer for the failed bank - if that does't work, they will allow you to file a claim and as you say could take years -

 

Bottom line - keep most of your assets in institutions that the likelihood of a failure is minimal - i.e., BDO, BPI, Metrobank etc. and in your home country.

 

From the Business Inquirer re LBC Bank:

The placement of LBC Development Bank under receivership may come as a surprise to the bank’s depositors given the institution’s track record.

LBC Bank was previously awarded the “superbrand” status by Superbrands Philippines Council, which cited it for being one of the most reliable and trusted brands.

 

http://business.inquirer.net/18321/lbc-bank-placed-under-receivership

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From the Business Inquirer re LBC Bank: The placement of LBC Development Bank under receivership may come as a surprise to the bank’s depositors given the institution’s track record. LBC Bank was previously awarded the “superbrand” status by Superbrands Philippines Council, which cited it for being one of the most reliable and trusted brands. http://business.inquirer.net/18321/lbc-bank-placed-under-receivership

 

Didn't say it would be easy - but if this is the second time this has happened to this bank - if it does get taken over by a (3rd?) Institution - my advice is get your money out ASAP after the new bank opens - unless of course it is bought out by one of the stable banks mentioned.

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