BSP sleeping on anomalies involving rural banks | Inquirer Opinion

BSP sleeping on anomalies involving rural banks

09:04 PM November 15, 2011

Is the Supervision and Examination Sector (SES) of the Bangko Sentral ng Pilipinas (BSP) sleeping on the job or is it so emasculated it just lets rural banks make their own self-examination and tell BSP they’re ok?

On Sept. 15, 2011, a certain party complained to the SES that a rural bank in his town made a series of debit transactions on his account without authority, including four described in the debit memo as “No transaction involved.” He mentioned weak internal control and possible illiquidity as probable causes for the nine-day delay in effecting their requested to another bank. The rural bank concerned has not taken any action on his demand for reimbursement.

The reply he got,  dated Oct. 6, 2011, simply said that they (the SES) had forwarded his letter to the president of the bank concerned, together with a request to send to the complainant, copy furnished to them, “its comments and/or action taken thereon.”

Article continues after this advertisement

Is this why several rural banks have failed?  Is this why some rural banks became victims of smart operators? This is a growing menace to unsuspecting rural bank depositors, most of whom are market vendors.

FEATURED STORIES

Was  the recent resignation of Jose Nograles as president of the Philippine Deposit Insurance Corporation, which have paid off billions of pesos in insured deposits of failed banks, a consequence of the inefficiency of the BSP?

If the SES cannot perform as it should, I suggest that its functions be transferred, if this is legally feasible, to the Commission on Audit, which has become more credible under the Aquino administration.

Article continues after this advertisement

—AMADO F. CABAERO,

Article continues after this advertisement

amacabsenior1

@yahoo.com

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

TAGS: letters, rural banks, scams

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our newsletter!

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

© Copyright 1997-2024 INQUIRER.net | All Rights Reserved

This is an information message

We use cookies to enhance your experience. By continuing, you agree to our use of cookies. Learn more here.