In a small bank? If you have a Filipino bank account you need to read this. https://ph.yahoo.com/news/philippin...eeze-on-delay-of-loan-payments-155610639.html
tried to open the site but my software replies the site cannot be reached. can you give us a short version? do we need to cash out? or avoid small banks?
Here is a copy and past of the yahoo/news article. ""By Ditas Lopez Banks in the Philippines warn their cash flow may be reduced by as much as 4 trillion pesos ($82 billion) should a bill that seeks to delay loan payments by a year becomes a law. The plan could result in “massive liquidity crunch” of 2 trillion to 4 trillion pesos, or 20%-40% of outstanding loans, according to a document from the Bankers Association of the Philippines. This followed warnings from the central bank and a business group. “New lending would dry up; worthy borrowers deserving of new funds would not get them,” the nation’s largest group of lenders said. Smaller banks may not survive the financial squeeze, putting depositors’ money at “undue risk,” it said. A pandemic relief bill passed by the House of Representatives proposes a year-long loan payment holiday, while the Senate’s version suggests a one-month reprieve, according to the Bankers Association, which supports the latter. Lawmakers from both chambers of Congress must come up with a unified measure before it’s sent for President Rodrigo Duterte’s final approval.""
It was just a matter of time. Foreclosures going on or loan payment holiday, bad news for the banks either way, equals more bad news for the economy. The elected 'Leaders' did it to the country. Back to a cash based society for a while. This is what they meant when they began saying, 'The cure could be worse than the virus.'
I cited recently here the cases of Cyprus and Greece, where depositors woke up one day to find that 10% or so of their savings held with financial institutions had been skimmed off by the governments to pay for sovereign debt. Make of that what you will as I am going to say no more.
so i did not see your cyprus/greece post. banks here have a deposit insurance up to 500P per account (i think). i keep a signficant deposit here (enought to live for a few months) but i do all my credit card business and other transactions stateside using the internet. banks here are are just a mayonnaise jar for me. would love to get input from other posters on their feelings about the risk here under current circumstances.
In my opinion, I would say the larger banks, BDP, BPI, Metro, Security, Landbank, Veterans are probably ok, but if you have anything in a Rural Bank or know someone who does, I'd be getting out of it. They have usually been the ones to go into receivership even when the economy was good in Philippine standards. Oh and the PDIC covers P500,000, probably just a typo on your part.
All 'guarantees' are dependent on the institution having the cash available to pay out. And, an important point to remember, the greater mass of a population cares little about the wealthiest few (which in most countries are probably people who have more than a month's living expenses in savings) and would not remove a government that failed to pay back thousands to the 'losers'.
