Wealthbank infuses P100M for upgrading

While the rural bank industry is battered with the sudden declaration of bank holidays by the members of the Legacy Group, the locally owned Wealth Development Bank (Wealthbank) on the other hand, announced to pour a fresh P100 million funds for systems upgrading.

Operated by the Metro Gaisano Group of companies, Wealthbank president Sabiniano Villamor said that expansion plans for the bank has not been shaken by the negative developments in the industry.

"We have to continue, crisis or no crisis. But we are on calibrated expansion mode. We have to be very careful and continue to be vigilant. We remain conservative in granting credit by keeping and following the standard credit approval process," he said.

Wealthbank recently opened the last two of the five branches it planned to open this year. Wealthbank-Tabunok opened on November 24 while Wealthbank-Banilad opened December 12. The development bank earlier opened two branches in Davao and one branch in Iloilo.

Deogracias B. Godin, Wealthbank-Tabunok branch head said that Filipinos' confidence in the country's banking sector remains strong despite the unfolding recession in the United States which might eventually affect our country in due time. 

The strict monitoring of the Bangko Sentral ng Pilipinas (BSP) on the banking system in the Philippines may serve as a firewall against the fallout of the financial crisis in USA.

He said the bank's presence in Tabunok will help expand this confidence in terms of depositing money in the banks and contribute to the continued development of the outskirts and suburban communities.

With Wealthbank's competitive rates of its loan portfolio, which include car loans, housing loans and business loans, Godin said the branch aims to corner a substantial size of mixed loans next year.

Meanwhile, Villamor said that the expected effect of the global financial crisis in the country, like the 1997 financial crunch in Asia will soon come to pass.     

"We survived the 1997 crisis. There is no reason why we can't survive this one," he said.

Wealthbank now has six branches in Metro Cebu. The Metro Gaisano Group, under its holding company, Vicsal Development Corp., is the bank's majority shareholder with Development Bank of the Philippines (DBP) and the Land Bank of the Philippines (LBP) as equity partners.

The bank joins other locally-owned business establishments in pursuing expansion plans while other companies, including multinational firms are holding off expansions.

Cebuano businessmen believe that this time of crisis, is the right opportunity for them to position themselves, while the rest of the players are "fearful."