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3stripes

Try and avoid the Rural banks

 

Looking at those PMT forums it seems that some people have yet to be paid after two years of filing their claims.

 

At least Celso is dead, not much consolation to those he screwed

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A_Simple_Man

The problem with Philippines is that names mean nothing. Calling a Rural Bank a 'Bank' is just fun with words. In Canada we have HFC and other finance companies which remind me a lot of Rural Banks.

 

Be warned. Getting financial advice from any member here is like asking a shark where the good swimming holes are.

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Davaoeno
In Canada we have HFC

 

HFC has been a part of HSBC since 2004

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smokey

I second that - not bad at all. So do I take it that rural banks have a history of collapse in the PI?

 

 

not a history they just take turnes

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smokey

With the utmost respect sir, I find your expression of love toward smokey/Robert51 a bit odd.... but brilliant!

 

 

yea that smokeys is a real dud so he invest in 2 one million peso tier two accts at I bank that gets swallowed up by union and collects 9 1/2 % on his money ... yea he is not sharp enough to invest in rural banks... now david invest and gets a free toaster and all i got was my money back. now that is not the lucky part the lucky part is when i went in it was 53 to the dollar and out 42 to the dollar... so skip the free toaster and use big banks

Edited by smokey
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smokey

I purchased a 5 year Time Share from PNB last year with an interest rate of 3.8% which is much better than what CD's in the USA are offering. I am seriously considering moving some of my investments here in the PI.

 

 

lets us know in 5 years if your bank is still open... rural banks are a real pain hope you did not put your money in one

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David_LivinginTalisay

not bad david except for the rural part which means if your not lucky your 5 year deposit can become a 10 year one and your lucky IF you get your funds back.... i think tier 2 in the major banks is safer then rural

 

This information is from your vast experience of such Rural Bank Peso Time Deposits and you personal; experience of submitting Claims with PDIC for a Closed Bank I take it?

 

But wait I think you have posted to this Forum, that you have never deposited any funds in any Rural Bank, so no experience of such and can not have had to submit such Claims, so you have ZERO knowledge and experience of the Claims Process also.

 

Can you even state How many Rural Bank are currently operating in the Philippines?

 

How Many were declared Closed by the Monetary Board last year (2011)?

 

your 5 year deposit can become a 10 year one and your lucky IF you get your funds back....

 

 

So Smokey, what is with all these 'Doom & Gloom' SoothSayer prophicies, over Rural Banks when you have 'ZILCH' experience of such.

 

Basically you have posted lies, and BS and should be treated as a joke (but you did NOT suggest you were joking)?

 

These (rash) statements of yours, certainly have no basis of fact, or evidence behind them, from someone who does have experience of such and the delays inPDIC processing.

 

12 x Legacy Group Banks were declared Closed by the Montary Board in December 2008. Here we are in June 2012, some threee and a half years later, and perhaps some still not received some of their Claims from the PDIC. That is a bloody long stretch to consider the PDIC taking another 18 months, as such cases most likely being rejected.

 

But how many are they, of those! Also they wont have reached the end of a 5 Year Term if the Banks were closed in 2008, as I don't peronally know anyone who placed in December 2003.

 

I did not even know such Rural Banks existed, back in 2003.

 

logo.jpg

 

Members of Pinnoy Money Talk only learned of Hi-interest time deposits in Legacy Financial Group's rural banks (Part 1)

fromPost #1 of that Thread by Forum Owner FutureGizmo

 

FutureGizmo - Administrator

 

Rural banks under the Legacy Financial Group offering 20% p.a.

« on: Oct 12, 2006, 09:21 AM »

Got this from the Entrepreneur Magazine's board.

 

=====

 

The Rural Bank of Carmen (Cebu) is currently offering a 5-Year Time Deposit with 20% Interest per Annum - interest is paid monthly thru PDCs issued to depositor every year for 5 years.

 

Up to P250K is insured by PDIC.

 

They also have an ongoing promo, for every P250K deposit you make within September to November 2006, depositor will be entitled to one Round-Trip Ticket to Bangkok or Hongkong plus hotel accomodations. Schedule of trip to the said destinations are slated on Dec. 26-28, 2006.

 

If interested, (and for appointments) you may directly contact Ms. Karen Pitoy (of RBC-Cebu) at the ff numbers: mobile 0915.5394481 / office (032)200.8217 & 429.9102.

 

=====

 

Bank has no website. I checked PDIC and the bank is a confirmed member. Phone number in PDIC and the one advertised above is the same.

 

If you have questions or more information about this, post here so we can discuss this bank product.

 

 

 

Well I did place funds in 3 months, and 1 / 3 / 5 / 6 Year Peso Time Deposits in some 8 x Rural Banks total over a period of 2005 - 2010.

 

It was 3, 5 and 6 Year Deposits for the 5 x Legacy Group Banks that got closed along with 7 others, in December 2008.

I have posted about real, factual experience of having placed Peso funds in such Rural Banks. The Legacy Group Banks had been offerng 20%pa since 1998.

 

My 1st deposit in such was March 2005 with BEA, and was receiving 20/12% per month Tax Free (as Saving Plans of > 5 years duration are exempt the 20% Withholding Tax.

 

So I had experienced 20%pa Nett, with Interest paid Monthly (into my HSBC Account) for 19 months before that Thead on Pinnoy Money Talk was formed, starti8ng with some RBC Promo Offer, with Trip to Bangkok with Hotel Accomodation.

 

So how come the Monetary Board not alerted to possible unsound Banling practices, if being published on a Public Domain Forum, about 8 years after such 20%pa Interest Rates being offered by these Legacy Group Banks.

 

The Interest from these Legacy Group Bank Deposits stopped in December 2008. Claims submitted in March 2009 and Payment received in June 2009, so you work out the average Interest for that 1st Deposit.

 

I bet it is higher than you were getting in the Commercial Banks from 2005-2009

even with the 6 months delay in processing/payout of the PDIC

 

Sure other claims took longer and Deposits not in the Bank as long. Then again sime deposits were Double Your money in 3 Years, with the 3rd Year interest paid in Advance (which is effectively 50%pa on the Nett Deposit).

 

Yeh the PDIC reduced that Advance Interest down to 0.5%pa and deducte from the Insured Amount when paying out, but the overall ROI was still a lot higher than I would have got in a Commercial Bank over thesme period.

 

Actually I placed a 5 Year Peso Time Deposit with HSBC in 2004, and it was paying 8.3%pa Nett

I still got higher than that, with my BEA Deposits in 2005.

 

 

What is the current Philippines Repo Rate compared with previous years back to say 2004?

 

 

Philippines Interest Rate

The benchmark interest rate in Philippines was last reported at 4.00 percent. Historically, from 1985 until 2012, Philippines Interest Rate averaged 10.2800 Percent reaching an all time high of 56.6000 Percent in December of 1990 and a record low of 4.0000 Percent in August of 2009. In Philippines, interest rate decisions are taken by The Monetary Board of The Bangko Sentral ng Pilipinas (BSP).

The official interest rate is the reverse repo rate (RR/P) which is the overnight borrowing rate.

The central bank of the Republic of the Philippines is committed to promote and maintain price stability and provide proactive leadership in bringing about a strong financial system conducive to a balanced and sustainable growth of the economy. This page includes a chart with historical data for Philippines Interest Rate.

 

 

chart.png?t=1339933556

 

What other Countries offer higher Interest Rates than 4%*

(according to BSP website, current Philippines Repo Rate is 6%**, Reverse Repo Rate* is 4%)

 

OECD & G20 Countries:

4.75 % (+ 0.25) Poland

5.00 % (- 0.25) Chile

5.50 % (- 0.50) South Africa

5.75 % (- 0.25) Indonesia

5.75 % (- 0.50) Turkey

6.31 % (- 0.25) China

7.00 % (+ 0.50) Hungary

8.00 % (- 0.50) India

8.00 % (- 0.25) Russia

8,50 % (- 0.50) Brazil

9.00 % (- 0.25) Argentina

 

Other Countries:

18.00 % (+ 1.50) Kenya

20.00 % (- 1.00) Uganda

22.00 % (- 7.50) Congo Dem. Rep

36.00 % (- 2.00) Belarus

 

See http://www.cbrates.com/ for more details on these Countries Bank Rates

 

So if the Official Philippines Interest Rate is the Reverse Repo Rate, and currently @ 4%, why are Banks, generally not offering anything like that Amount?

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David_LivinginTalisay

Check out some recent Press articles on Rural Banks by the BSP:-

Edited by David_LivinginTalisay
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smokey

F the charts reality is what i live for .. Rural banks(((( I THINK )))are in many cases 2 steps away from playing the lotto... it was only 2 months ago the charts and some members came on crying invest gold the charts say its on the way UP>>>>>

Edited by smokey
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David_LivinginTalisay

Try and avoid the Rural banks

 

Looking at those PMT forums it seems that some people have yet to be paid after two years of filing their claims.

 

At least Celso is dead, not much consolation to those he screwed

 

Any 'Proof' that Celco G de Los Angles Jr. is really dead?

 

Was there ever any DNA analysis conducted on the alleged tissue sample that showed Celso to have supposedly developed Stage 4 Cancer of the throat suddently? Where was the proof he actually had cancer?

 

Who issued the Death Certificate - was it genuine?

 

How come I did not read, can not find,any announcement, of a Funeral Service for Celso then?

 

Same goes for that SEC Commissioner, Jesus Enrique G.Martinez - no Funeral Announcement either!

 

If there was one, and strangely not 1 press report coverage can be found, what is the betting it was Cremation for them?

 

Put your self in Celco's shoes. Officially he was supposed to divest himself of all connections with Banks and Pre-Need Pension companies, when he became Mayor. He announces at end of 2007 that he wants to get out of banking and into Real Estate.

 

There was a Group 'Deushe Bank AG' if i recall correctly, offering to buy out all his Interests in Banks. That Group, however, being more than 40% Foreigner ownership, was turned down by the BSP./ Monetary Board.

 

There was also that 'Agreement' signing, with 'Ventures Trust Asset Fund' and 'Craig Berkman' involved.

 

Celso mentioned Deutch Bank as being that interested party!

 

We never heard any more about it.

 

What we heard about instead (and copies of 'Advertisement' in The daily Tribune, Thursday October 9, 2008, posted in Philippine Countryside Rural Bank)

 

$100-M Legacy Group Infusion

 

Ventures Trust Asset Fund
of the United States had signed an investment agreement with
Legacy Consolidated Plans Inc
. whereby Ventures Trust will invest $100 million into the Legacy Group's various local projects in the fields of ethanol production, banking, credit card operations and real estate development. At the agreement signing are Ventures Trust managing member
Craig Berkman
, Legacy president
Carole Hinola
, Fusion Capital Corp.
Roy Hilario
.
Fusion Capital
is the local representative of Ventures Trust.

 

Do a 'Google' on 'Craig Berkman'

 

I just cant help wondering if this collapse of the Legacy Group Banks, the bouncing checks of the PNBB2, and the subsequent filing for dissolution by some 9 x Legacy Group Companies, was because of Celso's involvement with Craig Berkman.

 

That is when, I think the rot set in, and the syphoning off, of funds from the Legacy Group Banks and LCPI Pension Funds, in 2008?

 

It would not and could not, have been sustained as a Ponzi Scheme, operating from 1998 to end of 2007.

 

Offering 20%pa on Deposits, when a Secured loan from the same Rural Bank changes 3% per month would bring in 36%pa,

 

That is a whopping 16% margin to work wich is more than enough for the Rural Banks. They have much lower over heads than Commercial Banks, with lower Rental or land purchase for premises, as not generally in City Centers They operate with much less staff, and dont provide ATM's mostly so less running costs there. More than enough to cover some bad debts (Tax write off anyway), and make good profits. There did not appear to be a shortage of Borrowers willing to pay 3%pm also. I heard that Commerical Banks with higher cost overheads, operate with 7% margin between Borrowers and DepositorsSecured Loan

 

HSBCAsset-Link Loan (8.5%pa Rate) compared to 1 year Term Deposit of under 1.5%pa

 

Look at the alternatives for borrowers, without significant collateral, like Property or a Vehicle - Pawn Shops, and Loan Sharks or '5/6ers'!

 

 

Read

Who is the real villain? BSP or PDIC

Sunday, June 28, 2009

http://celsoandhisle...at-bsp-has.html

Edited by David_LivinginTalisay
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USMC-Retired

Living here and knowing absolutely nothing about banks. If I had money to invest I would not do it in a Rural Bank. Why because the press says they go bankrupt and getting your money from PDIC can be challenging unless you have OCD for record and note taking. But like I said I know nothing except what I hear and see on TV.

 

It just seems like a risk no matter how small it may be in reality.

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smokey

Living here and knowing absolutely nothing about banks. If I had money to invest I would not do it in a Rural Bank. Why because the press says they go bankrupt and getting your money from PDIC can be challenging unless you have OCD for record and note taking. But like I said I know nothing except what I hear and see on TV.

 

It just seems like a risk no matter how small it may be in reality.

 

 

 

well it works well for david that is why he just ordered his own lear jet to cut down on his time at the airport...

 

 

investments scale of 1 to 10 with 10 being the best...

 

any bank in a country other then your own.........7

any bank in a country that your only a visitor 6

large bank in a country other then your own 5

investing your money with family .......................4

investing your money with HER family................3

pitching coins on the street corner ....................2

(((i think ))) investing in rural banks...................1

investing with a linc member in gold.................- 10

 

 

i can get you 50% return on your money in under 2 min... we go to a casino you place all your money on a number and if WE win i give you .. your investment back plus 50% of the money we win.. if we loose you get the tax right off

Edited by smokey
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lets us know in 5 years if your bank is still open... rural banks are a real pain hope you did not put your money in one

 

Smokey,

Philippine National Bank was founded in 1916. I have been banking with them for the last 20 years and have been very pleased with what they have to offer. I actually have several friends that has retired from PNB and now have a nice pension by Philippine standards. I agree rural banks might not be a good choice other than a small account. To be honest, I was more worried a few years back when many of the banks in my country (USA) started collapsing....

Just my Opinion....We all have one....

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