It is not bandied about, but there is a hidden crisis that has been lingering for a long, long time concerning the set policy and general behavior of the Philippine banking community to entrepreneurs in the country.Right photo: Credit cards. Source: www.theguardian.com
Selective servicing is done by the banking industry, allowing only a meager few to avail of decent credit, while a lot of loose change is happily spread over a wide base by banks through the credit card system. The banks promote their credit cards and special incentives by making the card holder salivate at gifts and rewards to be obtained freely if and when the holder increases purchases.
A large number of law firms and collection agencies all over the country have benefited up to 45% commissions share for recovering long lost debts for credit card companies and banks.
The question is, when all over the world especially in the US Army, people start shying away from using credit cards because it buries one in serious perpetuating debt burdens, more if you are not scion or heir to the tycoons in Forbes' List, Philippine banks are obsessed with selling that product: the plastic money.
And 99% of members of the Bankers' Association of the Philippines are racing against each other in selling insurance and pension plans without letting the enterpreneur class to succeed. ( Please see source article here. )
However when it comes to slightly bigger credit, the bank will sit on the application of the borrower and not grant the loan if and when a small justification can be found. If the depositor and borrower is a billionaire or a drug lord, criminal with a sack of money and roomful of funds still waiting to be counted at his hideout, the response is quick and the banker can even cite the Holy Bible at Matthew 13:12: "They who have, therefore they shall be given more."
