The bankruptcy of Lehman Brothers will have minimal impact on the country's economy according to the report from the Inquirer as the country's banks have low exposure on the said financial firm:
As a percentage of total assets of the individual banks, the exposures are as low as 0.5 percent and as high as 1.7 percent, according to the estimates, which were discussed at a meeting of the BSP policymaking body, the Monetary Board, on Thursday.
The real problem for the Philippines however are the large number of rural banks going kaput! From the Inquirer again:
Taxpayers will have to shoulder billions of pesos worth of deposit insurance payments should a set of rural banks across the country--controlled by one man--close due to insolvency. According to bank regulators, the total bill that the state-owned Philippine Deposit Insurance Corp. (PDIC) will have to foot should these rural banks cease to do business is "over P12 billion" as of the latest data available.
When this report came out, I wondered why this problem wasn't explored or even hit the headlines of the TV news programs when many small depositors were affected is beyond me. I got hold of this issue at pinoymoneytalk.com and I think this is big news. But it didn't get the much coverage. Pity. This is not the first time a rural bank collapsed in our country. As a small-time depositor, my rule has always been to put my money in big banks only. It is better to be safe than sorry. I alone can protect myself from harm. Yes, my deposit is small but at least its safe or liquid. It's not like the regulators would come swiftly to the rescue and even if they do you can't recover your money quickly anymore. Several legal processes have to be done. In short, you will get your money again after many hassles.