Wednesday, July 18, 2012

‘’DELEVERAGING’’

It is great to have a new word – a novel term – in town! There is this additional vocabulary, a fresh – though not necessarily refreshing – terminology that was recently invoked and wherefore even quoted by the major dailies. This simply means that there can be new human thought or modern objective realities that require an equally update language for the consideration and even amazement of all those concerned. However, this does not preclude the possibility that the unique word can be an element of vocabulary gymnastics – intended to confused people and/or to cover up a painful reality.

"DELEVERAGING" – behold the unique and intriguing terminology. What does it mean? It was lately used to explain the fact that no less than five (5) rather big banks in the country closed or simply closed shop. These were the American Express, the Societe General, the Union Bank of California, the First International Bank and the Fortis Bank. The reason for the closure? Here: "Deleveraging". Translation: it was said that the countries they are identified with are those presently suffering from big financial woes. Hence, they are getting rid of their banks – by selling out.

Question: What about the other some thirty (35) banks in the Philippines that also called it quits in the past eighteen (18) month or so? If the reason is not "Deleveraging" – whatever this means – then what? The country is reportedly fast developing and progressing in its socio-economic stature as loudly proclaimed and repeatedly assured by the present administration. Questions: why the many bank closure then? Is the local banking system not really hurting? If not, why the bad news from both the big and little the local bank in the Philippines.

There are times and occasions the freedom of information bill (FOI) becomes not merely relevant but also necessary. This is not to say that confidentiality is passé even in conjunction with strictly state function such as intelligence data. But when something is definitely relevant even to the day by day life of ordinary citizen – such as precisely the banking system – it stands to reason that even bad information about it should be made known to the general public. Such is certainly the right of the people and the obligation of the state.

It was recently reported that banking is relevant only to a rather small minority of Filipino. The more wherefore they should know what to do while spending it with gusto. One thing is certain: whenever a bank closes – the same with insurance companies – their depositor and subscribers respectively are the pitiful victims thereof.

Question: what is going on "Deleveraging"? What?