The problem of interbranch service charges is more acute in some banks that have fewer automated teller machines (ATMs).
This problem is more acute for government employees in the provinces because there are fewer Land Bank ATMs and branches out there.
STRESSING that depositors should not bear the burden on the failure of his bank to provide his required services , Rep. Alfredo Garbin Jr., AKO Bicol partylist said the interbank service charge for using the ATM and systems of another bank should not be deducted from the balance of the depositor who withdraws or transfers money.
That charge should be an expense of the depositor’s bank because it was unable to directly provide the ATM service, thus forcing the depositor to avail of the system of another bank.
“Yung problema ng bangko, wag ipaproblema sa depositor. Kasalanan ng bangko iyon na konti, kulang, o hindi strategically-located ang kanilang ATMs at branches. Bakit ‘yung depositor or payroll account holder ang mababawasan ng pera? Mali iyon,” Garbin stressed.
For example, Land Bank handles the payroll accounts of hundreds of thousands of government employees and millions of “ayuda” beneficiaries.
But the Land Bank has only 406 branches, 63 branch lites, 3 extension offices, and 2,195 ATMs as of 2019.
Those Land Bank branches are lesser than for example, BDO which has 1,436 branches and 4,466 ATMs as of 2019. Meanwhile, BPI has 1,170 branches and 2,822 ATMs.
So, when government personnel withdraw their salaries from Land Bank, most of them use the ATMs and facilities of BDO, BPI, and other banks with easier- to -access locations and networks.
The accounts of government personnel are deducted or penalized for the inability of Land Bank to provide more ATMs and branches.
“It is Land Bank which should bear the cost of their lack of capabilities to serve their clients,” Garbin noted.
This problem is more acute for government employees in the provinces because there are fewer Land Bank ATMs and branches out there.
This is the reality underlying the decision of some banks to have interbank service charges.
They are at the disadvantage because they are supposed to primarily serve their own depositors, but the depositors of other banks also avail of their ATMs and services.
There are times, their ATMs run out of cash because too many depositors of other banks withdraw cash from them.
These private banks should not be faulted, bashed, or criticized for the inability of Land Bank to be accessible.
Some of the banks have been waiving their service charges or postponing their increases in service charges, but this solution is piecemeal, temporary, and unsustainable, and disadvantageous and unfair to the larger banks who bear the burden of serving depositors of other banks.
Perhaps, the Bangko Sentral can apply a systemic solution that does not burden the public.
The BSP is the expert institution on this and would know what to do.
Private sector experts, including those with international expertise could weigh in with possible alternatives applied in other countries and probably doable here in the Philippines. (RdlC)