CEBU CITY
The Philippine Deposit Insurance Corp. (PDIC) took its “wise saver” campaign to this city on Wednesday, bringing representatives of the country’s banking industry to teach more than a thousand business students from universities on how to save properly and wisely.
PDIC president Jose Nograles said reforms in the banking sector have ensured that banks are stronger and regulatory systems better, in order to protect the interest of the saving public. He admits the Legacy scandal that sent several rural banks into bankruptcy and affected thousands of investors has pushed the industry to be more vigilant.
But he told students that the best way to keep money is still in the banks, and it is the responsibility of the sector to encourage people to save.
“We will be continuing with our efforts to teach people on the basics of saving,” Nograles told reporters. “We would also like depositors to be responsible bankers. Banking requires the trust of everybody involved from the clients to the banks.”
Over 1,000 students from the University of San Jose-Recoletos and University of San Carlos joined the Cebu stop of the campaign called Be a Wise Saver. Also present at the program were officials from the Bangko Sentral ng Pilpinas, the Cebu Bankers Club and the Rural Bankers Association of the Philippines.
PDIC also partnered with the country’s rural banks, who admit they are trying to break free from the stigma caused by the Legacy scam. Nograles said rural banks continue to be at the forefront of microfinancing and community banking relationships.
According to Tomas Gomez IV, past president of the Rural Bankers Association of the Philippines, their group has continued to grow steadily despite the Legacy scandal. He said as of December 2009, there were 2,170 rural banks in the country with 6 million depositors. Half of the rural banks are in places where there are no other banks, he said.
“Many times it is the only bank in the town. Rural banks also have a social purpose in the community,” Gomez IV.
Nograles said rural banks continue to serve their purpose in rural communities and should not be affected by the Legacy scam.
“Legacy was not your usual bank closure and they were doing the usual rural bank operation,” he said. “The relationship with the community remains the core strength of the rural bankers and microfinancing is their core competency.”
The PDIC launched its first financial literacy advocacy five years ago with a unique curriculum-based program in the country and the first in the Asian region. The nationwide advocacy teaches the young people on the value of saving, the impact of savings mobilization on economic growth and PDICs role in helping maintain the stability of the banking system.
Source: Business Mirror
