Who's protecting bank depositors, creditors?

The Philippine Medical Association was still reeling from the convulsive effects of its recent election of officers when former PMA treasurer Dr. Mariane Dobles confirmed to the new Board headed by president Modesto Llamas the disheartening news of insolvency of the Export and Industry Bank where a portion of the Association funds (P11.5 million) were deposited.

The information came as a shock since for the last several years there were no prodromal indications that the bank was experiencing business difficulties.

Eleven million five hundred thousand pesos set aside for the PMA projects of medical missions, assistance to areas of catastrophes, calamities and epidemics may be compromised unless favorable measures are instituted by the Central Bank.

Every time a bank folded up, the victimized (depositors and creditors) squirm in helplessness and despair questioning why the government has no warning system alerting the public about ailing banks even long before the problem becomes irreversible? Is protecting bankers’ interest a priority of government over those of the bereaved clients, particularly the poor sector enslaving to earn and trusting banks with their hard earned resources for the future of family members i.e. education, health and welfare?

Of old there were government auditors monitoring business climate of banks, have they retired? Woe is PMA if the fiasco is not favorably resolved. The new administration is not culpable for this but the incident is an eye opener for those concerned to institute reforms.