Wednesday, May 9, 2007

New Yahoo Group - "High Interest Rural Banks - Philippines"

High Interest Rural Banks - Philippines

This Group was formed for discussion, information, and promotion of certain Rural Banks within the Philippines, that are offering High Interest Time Deposit products.

  • Here is a good place to find FAQ's on this topic.

  • Reference material and Links to relevant websites.

  • Discover the truth and reality behind genuine banks, registered with Banko Sentral ng Pilipinas (BSP), with genuine products - deposits are insured with Philippine Deposit Insurance Corporation (PDIC).

"Don't believe it - too good to be true?" Here is where you can find out hopefully?

Whilst you can post your opinion on such Banks, and their 'products', we ask that you back up such 'viewpoints' with some sound 'argument' and 'logic', rather than voice mere 'suspicions' and 'rumours', OK?


This Yahoo Group "High Interest Rural Banks - Philippines" is effectively closed now!

  • No New Message Posts, being Approved
  • All new Applications for Membership, being Rejected
  • 'Messages' closed to Members
  • 'Files' closed to Members
Blame the Blogger of this Blogspot:-

BLOGGER details:-

Name: Suhir

Home: Pune, Maharashtra, India

About Me: I am a Business Man. I am from Pune. This blog is a part of my hobby.

No, he is not a business man, but a Hacker!

His Hobby is ripping off Yahoo Group Message Posts, and putting them on his Blogs, via an Atom Feed.

Sudhir has no respect for why this Yahoo Group was formed, nor why it was Members Only, who expected their Messages to be viewed only by other 'Members' of this 'Private Group

He is a thief who steals 'Private' message posts, and makes them available to the 'Public' via these 'Blogs' of his.

He is doing no work on his Blog, no creative effort - just THEFT!

Well we have had enough of this!

Google don't seem to care that this 'Sudhir' is able to set up his, with the same 'name' as our Yahoo Group (with '' tacked on) and via this RSS/Atom style 'Feed' - simply steals messages from any Yahoo Group Public or Private apparently, without permission.

I dont think this 'Sudhir' joined our Yahoo Group, under false pretenses, and using some 'alias' to become a Member.

They don't seem to care, that there is this Security problem, that allows 'Sudhir' to achieve this.Well I care, that the Members expected their Message posts to be Private, and they are not, with this Yahoo Group.

The answer is simple, we just STOP using this Yahoo Group!'

'Sudhir' won't get much pleasure from stealing this MESSAGE, 2 times every day!

Owner: hi-interestruralbanksrp Yahoo Group

Sorry if any genuine Members, do not like receiving this Message via a DAILY 'Calander' Event, with Reminders

Suggest you unsubscribe from this Yahoo Group, and become a Member of the replacement Group - (having submitted your Application Form beforehand, and received the Invite to Join).

Anyone wanting to receive an 'Invite' to Join the replacement Group, needs to accurately complete and submit this Form -

Hope to see you on the 'Private' Wiki

David Whittall

Tuesday, May 8, 2007

PDIC Insured Deposit - reduces Risk?

Depositing funds in Philippine Rural Banks is Risky?

Why - becuse some 8 x Rural Banks get closed down by the Monetary Board each year!

Having said this, deposits are insured (up to Php250,000 per depositor/per bank), by the Philippine Deposit Insurance Corporation (PDIC), which reduces/offsets, this risk somewhat?

Banko Sentral ng Pilipinas (BSP) is taking steps to improve banking practices, so there is less chance of the Monetary Board needing to close a particular bank down.

  • "In particular, the market and liquidity risk guidelines provide that if the BSP determines that an FI’s risk exposures are excessive relative to the FI’s capital, or that the risk assumed is not well managed, the BSP will direct the FI to reduce its exposure to an appropriate level and/or strengthen its risk management systems. "Although the guidelines are not strictly Basel 2 to conform with institutional arrangements and operating realities in the Philippines, the principles outlined are consistent with Basel 2 principles and international best practices," the BSP said".
  • The Bangko Sentral ng Pilipinas (BSP) has approved a further tightening of its "fit and proper" rule for directors and officials of banks and other financial institutions. The new set of guidelines expand the grounds for disqualification of bank directors and officers by adding more crimes and offenses not previously included in the existing guidelines.

    The "fit and proper" rules were intended to ensure that officials in charge of banks and other financial institutions possessed the required integrity and competence for prudent and sound management. The BSP started tightening such rules in 2002 and two years later began prohibiting top officials from holding concurrent positions in different bank entities. It has also has been tying up loose-ends in the directorship and officership of banks to prevent conflicts of interest that could open loopholes for unsafe and unsound bank practices.
  • The 50-year-old Bank Deposits Secrecy Act has now been changed. Previously, owing to the absolute secrecy of deposits, unscrupulous, bankers have managed to manipulate financial reports to the detriment of the depositing public. This absolute confidentiality of bank deposits, over the years, has abetted unsound banking practices, which, in turn led to the collapse of a number of banks and the financial ruin of tens of thousands of depositors.

    Previously it was only after the Monetary Board has already closed down an erring bank, that regulators are able to examine deposits and belatedly discover unsound banking practices. Examiners from the BIR, Bangko Sentral ng Pilipinas (BSP) and the Philippine Deposit Insurance Corp. (PDIC) may now scrutinize bank deposits "for supervisory and tax audit purposes". Hopefully this will allow them to now discover erring banks with unsound banking practices, and take action, before the banks needs to be closed?
  • Based on Section 16 of the General Banking Law, to maintain the quality of bank management and afford better protection to depositors and the public in general the MB will "prescribe, pass upon and review the qualifications and disqualifications of individuals elected or appointed bank directors or officers and disqualify those found unfit."
  • "After due notice to the board of directors of the bank, the Monetary Board may disqualify, suspend or remove any bank director or officer who commits or omits an act which render him unfit for the position," the BSP law said. The BSP added that in determining whether an individual is fit and proper to hold the position of a directoror officer of a bank, regard "will be given to his integrity, experience, education, training, and competence.
  • "The [BSP's] Supervision and Examination Sector shall make an annual assessment of the performance of external auditors and will recommend deletion from the list even prior to the three-year renewal period, if based on assessment, the external auditors' report did not comply with BSP requirements," the circular says.
  • The Monetary Board of the Bangko Sentral ng Pilipinas (BSP) has approved tighter guidelines on dealings of banks with their Directors, Officers, Stockholders and Related Interests (DOSRI) under the provisions of the General Banking Act. "We hope these regulations would curb excessive DOSRI lending which has been a major cause of bank failure," said BSP Governor Rafael Buenaventura.

Republic Act 9302 not only increased the amount of deposit covered by insurance (to Php250,000) but also restored the Philippine Deposit and Insurance Corp.’s (PDIC) authority to implement stricter monitoring and governance standards for banks. The new law is careful to point out that it is not duplicating work being done by the Bangko Sentral ng Pilipinas. RA 9302 reverts examination powers to PDIC, a mandate curiously taken away from the agency when the General Banking Act was signed in 2000. With the restoration of examination powers, the PDIC can once again look at bank ledgers, and even conduct an investigation on a bank based on a complaint lodged against it.

Tightening the screws

"Some other relevant provisions stipulated in RA 9302 worth mentioning are: continuing deposit insurance coverage for depositors even if the bank is delinquent in premium payments; stiffer criminal and civil liabilities for erring bank owners and officers; legal indemnification for acts of PDIC officials done in good faith; and enhanced regulatory and liquidation powers which includes the authority to reduce abnormally high interest rates on accounts held by closed banks. Erring bank owners found engaged in unfair and unsound banking practices will be liable to up to 12 years in prison or up to P2 million in fines. Banks that peddle in dubious bank promotions that promise "double your money" schemes in one year should beware.

Let’s just hope that the new law gives PDIC enough muscle and teeth to carry out its mandate.

Shoring depositors’ confidence

At least, the amendments on the PDIC Charter will boost the sagging morale of wary depositors who fear bank closure each time the political and economic scenario dims. With the higher insurance coverage, 96 percent of the total deposits in the banking system will now be fully backed by deposit guarantees, up from 91 percent from the previous insurable cap.

Based on 2003 banking data approximating deposits in the system at P2.4 trillion, the new insurance coverage translate to full insurance coverage for some P716 billion in deposits versus P462 billion at the previous P100,000 cover.

For now, depositors have one more good reason to leave their hard-earned money with banks rather than in the hands of pyramiding con artists."
If you read what the press and the PDIC report on Banks getting closed, such as Bank of Cebu, which was closed on August 31, 2006, you should also see, how responsive the PDIC are becoming.
"The PDIC took over THE BANK OF CEBU (A DEVELOPMENT BANK) and its branches, assets, records and affairs effective August 31, 2006".
"A week from takeover of The Bank of Cebu (A Development Bank), state insurer Philippine Deposit Insurance Corporation (PDIC) will start servicing depositors’ claims for insured deposits on September 8, 2006. This is in keeping with PDIC’s commitment to start claims servicing in single-digit turn-around-time (TAT) from bank takeover".
Now you could be thinking, it is one thing to "starting to service claims", but actually "paying out the returned deposits", could take several months?
A friend of mine posted the following message to a Forum on 11th september 2006:-
“Just a little bit of information, a Filipino friend has just received [last Friday - 8th September] a payment of Php 250,000 from the PDIC. after his account went down the Bank of Cebu, his balance at closure was 600,000, he has been informed that the remaining balance will also be refunded, However no time span was given, as the Banks assets have to be sold first.
So the PDIC payment was pretty prompt (8 Days)".
It seems the PDIC can start paying out pretty quickly, after you have submitted your claim with all the required documents, and provided the banks records are accurate and complete.
"Deposit records are subjected to an examination prior to the start of servicing/settlement of claims. As soon as the pre-settlement examination is completed, PDIC shall schedule the servicing of claims".
The length of time needed for the pre-settlement examination of deposit liabilities of a closed insured bank largely depends on the completeness and accuracy of records turned over by the Bank to PDIC and the number of deposit accounts to be examined. On the average, claims servicing for banks with problematic records starts 2-3 months after takeover by PDIC.

I don't know what you think about this PDIC insured deposit, but for me, it definately reduced the risk of me losing my money, if such bank, where I placed my deposit, were to be declared closed, by the Monetary Board (MB).
The way I see it, is investing my money, by placing funds in a Peso Time Deposit. with a registered, controlled, regulated Bank, and having such deposit insured by the PDIC, is lot less risky, than investing in Stocks & Shares and say UITF's?

Tuesday, May 1, 2007

"What does it cost to live/retire in the Philippines?"

I have mentioned certain Rural Banks in the Philippines that offer up to 20%pa. The monthly Interest from such, was instrumental in my being able to take 'Early Retirement' and Live in Paradise (Cebu) with a 'comfortable', enjoyable, lifestyle.

Many people ask
"What does it cost to live/retire in the Philippines?"

The answer to such a question is complex, because of many variables?

  • Is this a single person, a married couple, or a family with Children (if so what ages)?
  • Are you going to consider 'Renting' somewhere to live?
  • If married to a Filipina, you could consider purchase of lot, and have a house built.
  • What about 'Transport' - use of 'Buses' and 'Taxis', or 'Purchase' a vehicle?
  • What sort of 'Lifestyle' do you envisage?

    The cost of going out to Bars/Resteraunts, Clubs, Cinemas etc is a lot cheaper than the UK etc, However it obviously needs a higher budget, than buying food and drinks from Supermarkets, and cooking and entertaining at home. What sort of 'Sports' might you wish to follow? Golf is more affordable, but Membership to some Clubs can be costly. Sub Aqua is not that expensive to get trained up, if you dont already have dive qualifications. Buying you own gear is better long term than renting, but travelling to different parts of the Philippines to discover new Dive spots adds up, depending where and hjow often. Staying in Resort Hotels with Dive Boats for hire and Master Diver as guide, does increase the Budget you will need also.

Certainly if you have children, you need more 'income' to cover the cost of schooling. This increases, as the children get older, with High School, College, and perhaps University.

I would suggest 'Renting' a place - initially at any rate. This gives you a chance to get the feel for the selected area of the Philippines, the City/Town and the 'Banangay'.

If/when you come to considering buying a house/lot, is it best to have an individual Lot or a 'Subdivision' from a Developer? Do you choose a design from such a Developer with House/Lot purchase, or 'Lot Only' and have your own House designed and built just the way you want it.

Certainly the cost of having a custom house built here in the Philippines is a lot less that comparable properities say in the UK.

Our 3 storey (105 sq m) extension with the following:-

1st Floor: Reception, Lounge,fully fitted Kitchen and Dining room.
Garage, external entrance to Maids quarters.

2nd Floor: Master Bedroom with en-suite/common Bathroom and Terrace,
2nd Bedroom, hall, Terrace at Rear and stairs to 3rd Floor.

3rd Floor: Lounge area, Mini-Bar with Dartboard, store cupboard with access to loftspace,
Large Terrace (with impressive views of hills and land down to coast).

View a 'slideshow' of our Philippines Home
(built for just £13K, or $23.3K, 2.5 years ago)

The Bottom Line
A couple with no children, the house, and a car, already paid for, could have a 'comfortable' lifestyle on Php50-80,000 a month.