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Sunday, September 21, 2008
BSP official: Let us not panic on Lehman's downfall
MANILA -- Bangko Sentral ng Pilipinas (BSP) deputy governor Diwa Guinigundo advised the public Saturday not to be alarmed by the US giant bank Lehman Brother's declaration of bankruptcy last Monday.
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Guinigundo said bank depositors should maintain their trust in their respective banks and not panic.
"We should have trust and conviction that we can withstand the impact of Lehman's collapse. Let's not panic or get carried away with this problem," he said.
He then assured the public that their deposits are safe in the banks and investments reaching P25O,000 will have transparency.
"Although we are in a way affected by the economic crisis happening in other countries, our banking system is trustworthy and people should not withdraw their investments," he added.
The BSP official said if many people withdraw their deposits, any bank whether it is stable or not will definitely deflate. "It is not safe for people to withdraw all their money and just keep it in their houses."
Even though there is an economic slowdown, Guinigundo said people should not be afraid to invest their money on businesses especially on food. "For every challenge there is an opportunity," he stressed.
According to him, the BSP will implement financial policies to protect depositors' investments if needed.
"Our banks are sound," Guinigundo said as what BSP governor Amando Tetangco accounted last Wednesday.
Guinigundo admitted that he is not sure when the economic crisis will end. "But in our case we are here to monitor, we are prepared to any possibility that may happen," he said.
On Tuesday, two top banks in the country - Banco De Oro Unibank Inc. (BDO) and Metropolitan Bank and Trust Co (Metrobank) - disclosed respective exposures in Lehman investments. The Yuchengco-led Rizal Commercial Bank Corp (RCBC) also later bared its exposure to the said big investment bank.
On the other hand, there are already 12 banks that have disclosed non-exposure to Lehman Brothers. These are: Philippine National Bank, Allied Banking Corp., Export and Industry Bank Inc., Philippine Trust Co. (Philtrust), Philippine Bank of Communications (PBCom), Citystate Savings Bank Inc., Asiatrust Development Bank, Chinatrust (Philippines) Commercial Bank Corp, Union Bank of the Philippines Inc., China Banking Corp., Philippine Savings Bank (PSBank), and Security Bank. (JRDB/Sunnex)
For more Philippine news, visit Sun.Star General Santos. (September 21, 2008 issue)
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