2,693 depositors in Butuan City Banco Filipino affected by bank’s closure

by Ben Serrano

      March 25, 2011

            BUTUAN CITY (PNA) - Representatives from the Philippine Deposit Insurance Corporation (PDIC) claimed some 2,693 depositors of various amounts ranging from P500 to P10-M were officially affected by the closure of Butuan City’s Banco Filipino branch.

            PDIC spokesman Nathaniel Tumbokon and PDIC representative Ruby Sanglay however did not divulged how much really were the total amount deposited by depositors in Banco Filipino’s Butuan City branch alone.

            But some of the depositors present during Depositors Forum held at local hotel and convention center here yesterday claimed some of them have P1-M, P2-M, P5-M and some P10-M deposited in said bank.

            One old woman vendor from the crowd at the Depositors Forum claimed she had her one and only savings of P1,000.00 deposited at the Banco Filipino Butuan Branch.

            Some of the depositors most of them members of the affluent families in Caraga region claimed some of them were remnant victims of bungled financial Pyramiding scam Legacy.

“Now we are again victims for the second time because they offered double your money plan to depositors”, says depositor Marian Petilla

Depositor Bebot Butawan angrily reacted during forum why PDIC and Banco Filipino Butuan Branch could not give them right away the depositors’ money when he already had proper document to show that he is real and authentic depositor.

“I thought it is Banco na Matibay, Bangko na Matatag and what happened now might give us wrong impression that it is not safe to put our money in banks anymore”, Butawan added.

But PDIC representatives present and the one who conducted the forum explained to some 300 depositors of Banco Filipino Butuan Branch that under charter of the PDIC, the government insurance body was given six months to fix the problem.

The PDIC representatives further explained that depositors with P5,000 deposits or below will received their money back through registered mail containing checks.

They added that PDIC is providing insurance only up to P500,000.00 but it doesn’t mean all those who have deposited more than P500,000.00 will not receive back their money.

“ All those with more than P500,000 deposits will be process also by us and will depend now on the available assets of the bank that will determined returned of money but definitely you will get it back”, the PDIC representatives told the more than 300 depositors present at the forum.

Although majority of the 2,693 depositors are residents of Butuan City, some of the depositors come from nearby provinces, town and cities of Caraga region and some parts of Misamis Oriental particularly the nearby Gingoog City, it was learned during the forum.

PDIC representatives explained the Banco Filipino Butuan City branch will cease its operations and totally close but is open for existing claimant depositors. 

All 62 branches of Banco Filipino nationwide is now receivership under PDIC. Butuan City's Banco Filipino branch is the only Banco Filipino branch operating in Caraga region. (PNA/Ben Serrano)