Mahaplag is one of the towns in Leyte. Leyte is part of the region 8. Region 8 is one of the regions in the Philippines. Thus, Mahaplag is found in the Philippines. Why I open my article on that way? Because many people don't know where Mahaplag is located. One is asking if Mahaplag is found on the map. Mahaplag is a neigboring town of Southern Leyte where Agas Agas Bridge is located, the tallest bridge in the Philippines. Mahaplag has produced some pasalubong products like chocolate moron, bibingka and puto cheese at Brgy. Cuatro de Agosto. At main proper, there are also many establishments like pawnshops, grocery stores, churches and the one and only one rural bank.

Last Friday on March 11, 2022 to be exact, the rural bank declared a bankruptcy in the afternoon. It made chaos in our workplace as we heard the news. Somebody also posted in our group chat informing us that the rural bank of Mahaplag declared a bankruptcy. The news easily spread out through social media. The bank was under investigation by the PDIC or Phillipine Depositors Insurance Company even until now. From time to time, many depositors went in the bank and hoping their savings will be withdrawn.

Many people including the depositors wondered why the bank declared for bankruptcy. In fact, lot of people whose savings are millions. How could it be happened? In my simple analysis, though I am not a banker, a bank can stand alone having many depositors. Savings is considered as a lifeblood of the bank. It can run smoothly the operations and transactions with the million savings from the depositors.

Who are the depositors of the bank? Many of them were government employees like teachers and municipal employees. Businessmen are also contributory of the bank. Many ordinary people also trusted the bank whose savings is also millions of pesos. Even small groups from the school like cooperative and canteen, and churches or chapels deposited its fund to the bank. Sad to say that only half million will be insured by the PDIC whether the depositors are aware of it or not.

The following are the problems faced by the creditors:

1. PDIC holds all the ATMs of the creditors. Many teachers negatively reacted on this. If the PDIC will return back to Manila, they will go there just to get back the ATM.

2. Debtors are obliged to pay their loans fully. One employee of the bank called the creditors through phonecalls informing them that they should pay their loans. According to him, the money being released to the creditors were coming from personal money. Huh? Naglibog ko. Kwarta sa banko or kwarta sa empleyado Ang gipautang.

While the investigation is going on, there are rumors about the failures of the bank's operations and transactions such as the following:

1. The bank failed to comply the requirements of the PDIC.

2. Loan Payments were not reflected properly.

3. Mismanagement of the bank.

Due to the closure of the operations of the bank, lot of questions were raised from the depositors and even to non-depositors of the bank like:

1. What is the main cause of the bankruptcy?

2. Who declared the bankruptcy? Is it the bank or the PDIC?

3. Who is to blame for this?

4. Is really the bank unearning anymore?

5. Is mismanagement the root cause of the bankruptcy?

Those questions were remain unanswered until the investigation is over.

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Final Thoughts

Bank is one of the most trusted companies in terms of deposits or savings. Depositors should be wise enough on how their money be safe. Let us not forget that the insurance company like PDIC will cover only half million of pesos in case a certain bank declares bankruptcy. However, if you want to deposit your 2,000,000 pesos, have it multiple accounts. Divide it into four equal amount.

Be vigilant of your assets at all times. Keep on monitoring the status and performance of the bank where your money deposited. Don't be so sure that your money is really safe in a bank. Even big banks can also declare bankruptcy for the reasons that we really don't know. We do nothing if the stakeholders or owners of the bank will make an anomaly that would lead to closure of the bank's operations and transactions.

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