"10 x Your Money in 6 Years"!

"Too Good to be True"
- Are You Sure?

Many who read something like "Double Your Money in 5 Years" are sceptical, and will often dismiss it as "Too Good to be True".

Had I done the same, over 3 Years ago, I would be struggling to "Live in Paradise", with no job, and only £300 a month from an Annuity. As it happens, I investigated, and placed a 'Trial Deposit' into Rural Banks with 5 Year Peso Time Deposit paying 20%pa with Interest Credited Monthly. I have been receiving interest every Month for 35 Months now, so I happen to know -

"It's so Good, because it's True - Double Your Money in 5 Years, really works"!

Well if you still don't believe it, then you are the one missing out, not me!


There was a recent 'Promo' by some of these Rural Banks offering, an amazing

"Double Your Money in 3 Years!"

That's correct, a Bank product, with a Peso Time Deposit, having PDIC insurance cover paying Monthly Interest @ 33.33%pa.

Those who refuse to believe that is true, should find another website/topic, because they sure wont believe what I will say next?

"10 x Your Money in 6 Years!"

OK, this is NOT a Bank product, so no PDIC Insurance, as it is a Pre-Needs product from an SEC licencensed distributor: -

Whilst you do buy into a Pre-Needs Pension Plan, the real money from this 'Investment', comes not from the Pension Plan itself, but rather the 'Buy-Back' agreement from 'Legacy Card'.

The product is known as 'PNBB2' - Pre-Needs Buy Back - No. 2

The 'Terms and Conditions' of the "Deed of Assignment" give 10% of the Pension Plan Maturity Value (= 2 x PNBB Investment Value), as 'Initial Payment', immediately (can be used to give "Nett of Initial Payment" investment, some 125% higher than actual 'cash' investment).
The 90% Balance is repaid via 12 x 'Installments' over 36 months, commencing 1 month after signing. So for Php80,000 (minimum 'cash' - Nett of Initial Payment), one gets a 'Return' of Php180,000.00 over 36 Months.

Return On Investment (ROI) = (Gain- Investment)/Investment = (180-80)/80 = 1.25 (ROI)

Annual Percentage Rate = ROI/Period = 1.25/3 = 41.67% (APR)

STOP PRESS

Legacy Consolidated Plans Inc. have filed a petition with SEC for dissolution of their company.
This 'announcement' will appear in the newspapers soon

Subject: Confirmed Dissolution
From: jimmy lucero (VP, Legacy Finance Group, Visayas Region)
Date: 08/12/2008 8:20 pm

Please be advised that at the meeting in Manila today, Legacy Consolidated Plans, Inc. the issuer of the Pre-Need Buy Back (PNBB) product has decided to dissolve the company.

Petition will be filed with the Securities and Exchange Commission (SEC) and appoint a liquidator to pay creditors. As announced management assures our investors their investments will be given back.

Meanwhile, we wait for the announcement in the national newspaper.

We will keep you posted.

Ah well, it was "good whilst it lasted", and at least we get our Investment returned, and did make 18.75% of our Nett Investment with every Quarterly PDC that did get cashed up to that point.

Just hope there is not too much delay by the liquidator to release these funds. I would like to reinvest into some more "V8 Motorcycle Dealership' plans, whilst this particular investment, with Bank Guarantee continues to be available.

'V8 Motorcycle & Parts Dealer' - Investment

I am gettin 100%pa on the 1 Year Term, from my Php1M as part of a Group Investment of Php6M and
105%pa on the 2 Year Term, from my Php1M as part of another Group Investment of Php6M.

This V8 investment, could give even better ROI than what the PNBB2 reinvested offered:-

OK so if 41.67%pa sounds good, see what happens if you invest more, then re-invest for 36 Months, for a Return over 72 Months

Php240K PNBB Investment

Month ROI After Mnths
1 Php1,260,000 36
3 Php1,360,000 39
6 Php1,510,000 42
9 Php1,710,000 45
12 Php1,910,000 48
15 Php2,160,000 51
18 Php2,460,000 54
21 Php2,810,000 57
24 Php3,260,000 60
27 Php3,760,000 63
30 Php4,840,000 66
33 Php5,060,000 69
36 Php5,910,000 72
9.55 ROI
159% APR

See http://spreadsheets.google.com/pub?key=pwuT4qC4CgQ6IvSSP4pIcFA

The above Table shows what Return is possible on Php560K, every Quarter, with a new
re-investment, as well as the extended Period such investment is over.

If fully re-invested for 12 x quarterly periods, the Return over 72 Months will be Php5,910,000.00

That is 10.55 x Your Money in 6 Years!

I have been told that you do not need to be 'Resident' in the Philippines, for this particular Investment, as it is NOT a Bank Product.

"But how does one get to receive and spend such return from this investment, if not Resident in the Philippines?"

On the "Deed of Assisingment" Form, other than payment via Post Dated Checks (PDC), there is an option for payment of the 'Installments', via 'Pera Agad' card.


The 'PeraAgad' Card is a OneCard International* Prepaid Credit Card

OneCard International, an issuer of a globally accepted credit card being a principal member of MasterCard International, was established to provide business opportunities and alliance with varied companies and financial institutions that wishes to issue and finance credit cards with their own brand minus the usual hassles of setting up their own credit card company.

OneCard was originally owned by MBf Group Malaysia, the leading MasterCard issuer in Malaysia. It was renamed as OneCard International in the year 2001.

Where is my OneCard prepaid card accepted?
Your Onecard prepaid card is accepted both locally and internationally, there are over 32 million establishments and 900,000 Automated Teller Machines (ATM) who honor your card. Just look for the MasterCard and MasterCard Cirrus logo on any merchant establishments or designated Automated Teller Machine (ATM).

What is the use of my prepaid card?
Your OneCard prepaid card is available for use as follows:-

1. To make purchases for goods and services at any establishment that accepts the Mastercard as payment


2. To withdraw cash worldwide at Mastercard/Cirrus designated Automated Teller Machines (ATM) subject to particular ATM rules and regulations.
   

What is the cost of such 'Pera Agad' card?
Your Onecard prepaid card costs Php500.00. Of this Php100 is Application Fee, Php100 is a Maintaining Balance (not shown), and Php300 is credited to your 'Pera Agad' Card.

What is the cost of withdrawing cash worldwide at Mastercard/Cirrus designated ATM'?
Your Onecard prepaid card can withdraw up to Php25,000.00 equivalent, with NO CHARGE.
Succeeding withdrawals for the day, up to a maximum of Php50,000.00*, is subject to a charge of P83/withdrawal.(*Subject to limitations on the Amount Withdrawn/day, according to that particular Banks ATM machine)

Are there any other advantages to having such 'Pera Agad' card?
Your Onecard prepaid card pays Interest of 2% per quarter on the ADB (Average Daily Balance). So if using the PNBB investment to build, rather than spend, this adds an additional 8%pa.
Not a bad rate of Interest alone - better than most Commercial Banks can offer.

How does one go about placing such PNBB Investment, and this 'Pera Agad' card?
Send mailto:hi.interest.rural.banks.ph@gmail.com giving you Full Name and Address. You will be sent Application Forms, for you to complete, and return with instructions regarding payment.

How to Communicate with Family and Friends - Countries apart?

Most reading this will be well aware that you can keep in touch with Family and Friends, regardless of where they are, by using E-mail for one thing?.

Many will also have discovered Yahoo Messenger, with on-line 'Chatting', but now also supports Voice over the Internet.


Google Talk is another, with a similar competative offering,
(of which, I personally prefer, compared with Yahoo Messenger/Talk)

Download Google Talk and get:

• Instant messaging
• PC-to-PC voice calls
• Gmail notifications
• File transfers

Or connect to Google Talk on the web:
Launch Google Talk Gadget (No Download Required!)

Google Talk, is somehow less 'intrusive' than Yahoo Messenger (and has a better e-mail offering) in my opinion?

SKYPE, is a little bit different, and offers a wealth of features, with a convenient, easy to use interface.

It is probably this easy, convenient,and feature rich,
'User Interface', that has led to Skype becoming so 'popular'?

(Surprisingly so considering it is 'non-VoIP 'standards' conformant, thus Skype offering a 'proprietary' solution, that won't interwork with anyone else, with 'true' VoIP system/network - CUG - Skype only! ).

It's FREE to Download the Skype Software and install on your PC

You can chat away with free Skype-to-Skype calls and never worry about cost, time or distance.

• Adding friends and family to your contact list is simple – search, select, ad
• Calling is easy – select the Call Phones tab, enter a number and click the green button
• Free video calls - see who you’re talking to for free.
• Instant Message with anyone on your contact list or even use group chat to chat with up to a hundred people
• Conference Call with up to nine other people

That 'ease of use' and 'convenience' factor, is winning a lot of market share. Does not seem to matter there are potentially better VoIP systems out there, that do adhere to VoIP 'Standards' (such as SIP and/or ATA/ATA2), that are potentially capable of internetworking.

However for me, it is one thing,downloading some Skype software onto my PC for Free, but another when shelling out money to buy some VoIP 'hardware'.

I did not like the idea of being 'locked' in to using 'proprietary' Skype, if I bought some Internet Phone Adaptors (IPA). Potentially not being able to unlock the IPA, to use with another VoIP Service Provider?

But what is an Internet Phone Adaptor (IPA),
(you may well be asking yourself)?

Basically an IPA is an interface between a Telephone and the Internet (Broadband connection via Router/DSL 'Modem' usually, or sometimes built into the Router).

This is somewhat different from an Internet Phone that typically plugs into a USB port on your PC.

The difference being, with an IPA, one does need to have a PC switched ON, or even connected, (let alone the software running, and ones 'Stutus' enabled).

As long as you have power, and your Internet connection is up and running, then you can make and receive VoIP calls via a standard phone (including DECT Cordless), plugged into the IPA!

Calling to/from Philippines, is a lot more expensive than USA/UK/Hong Kong/etc?
(Because they did not implement true 'Telecom Deregulation' as in these other Countries. The Philippines just allowed new Carriers to join PLDT in a Telecom 'Club', instead!)

My wife, has a sister living in Hong Kong (married to Hong Kong Chinese).

The amount of money my asawa would spend of Mobile phone call re-loads, calling her sister in Hong Kong, was getting ridiculously expensive.

If her Sister had access to a PC in her home, and Skpe installed, that would have been one answer?

This is what I use to talk to my Brothers and Sisters in the UK, as well as my Brother, working in Bahrain - anyone with Skype installed that I add to my 'Contacts' List in fact?

I can't call my Dad for Free, as he does not have a PC/Broadband connection.

However I can call my Dad, via his UK landline telephone using 'Skype Out' where the Skype Internet Voice call passes through a 'Gateway' onto the UK dialled network, where the call is handled by the appropriate Carrier. There is a charge for this, but £10 Credit into ones Skype Account, goes a long way @ £0.012/min!

There are 2 problems here - i) her sister does not have a PC, even though there is Broadband DSL connection (her step-daughter using to her PC in her bedroom - usually locked/off!), ii) I am often on the PC and busy downloading things, or having many 'tasks' running concurrently. Whilst the amount of bandwidth is not that high, it is the low performance of my CPU, that can't cope with Skype voice call processing, and these other tasks at the same time, and tends to degarade the voice call quality?

So Which Internet Phone Adaptor, and VoIP Service Provider to select?

Having looked into and researched several VoIP Internet Phone Adaptors available, I decided aagainst going the Skype 'proprietary' solition that does not conform/interwork with SIP/ATA/ATA2.

So I decided to go VoIP Standards based Hardware - but SIP or AXA /AXA2?

This sometimes more to do with the particular VoIP provider you select, as some Hardware is compatible with both SIP and AXA. Some VoIP Network Providers (such as VoiceNet.com), support both SIP and AXA.

The Freshtel Network in Australia, is part of VoiceNet.com. Rather like Skype in terms of Free Internet to Internet Voice Calls.

One can download the 'Firefly' Softphone, register for a Free Freshtel TD
(mine is Freshtel TD: 81354400)

Those who are Australian Residents, and subscibe to a Call Plan with Freshtel, can avail of a FREE Internet Phone Adaptor


Freshtel 3010 ATA

Those who are UK Residents, will no doubt be aware of Supermarket giant, TESCO, and it's entry into the VoIP market with a range of Internet Phones and Service Contracts.

What some might not be aware of is that this TESCO VoIP Service is actually using the Freshtel/VoiceNet.com Network, and OEM Hardware.

NB: Received this e-mail from TESCO
concerning their Internet Phone and Talk WiFi Services:-

We are writing to let you know that from 27th April 2010, we will no longer be providing Tesco internet phone and Talk Wi-fi services. This is due to a number of factors that impact the service we provide to you, so we have decided to discontinue this offering. From this date your Tesco internet phone account will be closed and the service will not be available. You will no longer be able to access your online account or be able to make calls using your Tesco internet phone. This does not affect any other services provided by Tesco Telecoms. We apologise for any inconvenience and will be happy to assist you with any enquiries you may have. The Tesco internet phone team

Questions and Answers Q What if I have more than one Tesco internet phone account? A You may own more than one account linked to this email address. This email notification affects all Tesco internet phone and Talk Wi-fi accounts. All accounts will be non-operational after the above date. Q How much credit do I have on my account? A Log onto your account at www.tescointernetphone.com, and click 'Login/Register' and enter your account number and password in the log on section. For Pay as you go accounts: Once you are logged in, the first screen it will show 'You currently have ___ of available credit' For Call Plan accounts: Once you are logged in, you will need to view your last bill. Your bill will show a 'CR' if your account is in credit. Q Will my Tesco internet phone work with other internet phone services? A We cannot guarantee that your internet phone will work with other internet phone providers and recommend you contact alternative services directly for information. Q Will I be able to get a refund on the Tesco internet phone I've bought in store or through Tesco Direct? A We will be happy to offer you a full refund providing you have a receipt or proof of purchase and it was bought after 27th December 2009. Please return the phone to your local store. Alternatively, if you bought your phone from Tesco Direct, please call 0845 600 4411. Q Can I still top up my account in-store and on-line? A Unfortunately, you are now unable to top up your Tesco internet phone account. Q I've diverted my Tesco internet phone to my mobile phone, will this still work after the 27th April 2010? A Unfortunately not. We advise you to cancel all redirections to and from your Tesco internet phone by 27th April 2010. You can do this by logging into your account and changing redirections. If you require assistance please contact our customer care team. Do you have any other questions? Please contact our customer care team: @ tescointernetphone@tesco.net or tescotalkwifi@tesco.net @ 0845 300 20 20 9am - 9pm Monday to Saturday and 10am - 4pm Sunday. Calls may be recorded Mail Tesco Internet Phone/Talk Wi-fi PO Box 5879 Kings Business Park Kings Drive Prescott L34 1PJ

Tesco IPA 1000 internet phone Adapter

Catalogue number: 100-9564

Was £49.97 - but not any more!
Now £19.98 - Save £29.99

Was £49.97 Then £24.98 Now £19.98 Save £29.99

One of my Cebu_BritClub (Yahoo Group) Members, Martin Brown, offered to do me a favor by bringing out a pair of these TESCO IPA 1000's, to me here in Cebu, during his December visit. Martin however, went a stage further, and found the same Tesco IPA 1000 units on E-Bay UK.

These were being sold Brand New, still in unopened box, complete with it's £5 Voucher (for Call Time).

With Tesco giving 50% off the price, the Bids on Ebay, were lower accordingly.

Total cost of winning 2 Bids for TESCO IPA 1000 (including UK postage) = £26 (for 2)

With the IPA 1000, now available from Tesco @ £20, perhaps you dont need to find units on Ebay to get a good deal?

IPA 1000 - Installation and Operation

Installation was easy, as I have an extension block off my UPS that has 'universal sockets' meaning just about all power plugs will connect, including UK 13A type.

Just connect the supplied Ethernet LAN cable to the IPA 1000 WAN port, and a spare port on my Linksys WRT54G Router. Which in turn was connected to the MyDSL supplied aDSL 'Modem' (PLDT supplied ZyZEL P600 series - with just the 1 x Ethernet port).

Connected a cordless DECT phone to the IPA 1000 Telephone jack socket, and I was ready.

Once powered on, the Indicated on the top of the IPA 1000 was initially flashing RED, then flashing ORANGE. Once the start up sequence had finished (which took 5 minutes or so?), the light turned solid GREEN, indication the IPA 1000 had connected successfully and was ready for use.

(Because Martin had opened the boxes on my request, he had given me the units Seriel No. With that I was able to go to www.tesointernetphone.com/ipa and register my account, select the Telephone No., and give the Serial No of the IPA 1000 unit I was using on that Account. You have to supply an e-mail address, then an acknowledgement is sent out, to which you click on a URL to complete the registration process).

But as my wife's sister did not have her unit installed in Hong Kong yet,
"How could I test/use it"?

,This was easy - use my PC and SKYPE-Out to dial the TESCO Phone Number (Which I had selected to be a pair of Bournemouth numbers, so my Dad and other Family Members , like my son, who is currently working in Bournemouth, and my brothers and Sisters and cousin, all living there, can just make a local phone call, and our phone rings here in CEBU).

My wife. Sha-Sha's, new Tesco Internet Phone number: is: 01202 806504

I dialled +441202806504 via Skype and the DECT phone, connected to the IPA 1000, Rang!

The configuration settings seemed to have downdloaded after connection to the Internet, and first being powered up.

Needed to test the voice call quality, next.

I first called up my Dad (Using Skype-Out ,as I normally do, SkpeOut Rate to UK is £ 0.012/min or 1.2p/min).

Compare SkpeOut Rate to the Philippines £0.113/min or 11.3p/min.

So calling our Tesco Internet Phone number: +44 1202 806504, using SkpeOut, is cheaper than calling our Philippines landline +63 32 2728694.

I could have picked up the DECT phone connected to the TESCO IPA and dialled his Bournemouth No.

Tesco Call Rates (for 'Pay as you Go') are little bit more expensive than SkypeOut @ 2p/min, but if the PC is not powered up, and/or the Skype software not running, convenience wins out over the slight cost increase.

However I wanted to compare the TESCO Internet Phone quality, against Skype that I had been using.

So having spoken to my Dad using Skype, I got him to ring a local Bournemouth No 806504 (My Tesco No.)

My DECT phone connected to the IPA 1000 Rang, I answered it and my Dad was there speaking to me - remarkably clear! My Dad commented that it was just as good as calling other Bournemouth landlines.

Certainly the Quality seemed better than Skype, according to that one test call at least

Advantages of using TESCO Internet Phone Adaptor (IPA1000)

• You don't need connection to a PC, - direct to Broadband Internet Router
• Interworks with VoiceNet.com network users (i.e Freshtel in Australia)
• Calls to other Tesco internet phone customers are FREE
• Skype Out calls to UK (Tesco internet Phone No), cheaper than calls to Philippines
• It works with your existing broadband connection from any provider
• You get an extra phone line with no additional line rental
• TESCO voicemail service is FREE
• You'll get a new standard UK landline number (select Area and Number)
• It's easy to set up and use, and calls are really clear
• You'll pay less for calls to mobiles and landlines in the UK and overseas
  (but a little bit more than SkypeOut if using TESCO 'Pay as You Go')
• You choose the TESCO Call Plan and add-ons that suit the way you make your calls
  (Only needed to make calls to non-Tesco Internet Phone users - comes with £5 Credit Voucher)

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?


UPDATE

http://finance.groups.yahoo.com/group/hi-interestruralbanksrp/

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:-

http://hi-interestruralbanksrp.blogspot.com/

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 Blogspot.com, with the same 'name' as our Yahoo Group (with 'hi-interestruralbanksrp.blogspot.com' 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

http://finance.groups.yahoo.com/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 - http://cebu-shhh.com/phpformgen/forms/form1.html

Hope to see you on the 'Private' Wiki http://ruralbanks.wetpaint.com/



David Whittall

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.

http://www.philstar.com/philstar/show_content.asp?article=181336.

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?