It is arguable, and emotional ones would hit me with hates but let me try to educate you a little about Finance. Let me enumerate the possible causes IF DOLLAR ACCOUNTS details can be made accessible to the public:
Our banks might suffer from lack of CASH reserves thereby affecting the whole Economy of the Country. International Investors will lose their trust with the banks in the Philippines and from its Government if its that too easy to have DOLLAR BANK records made available to the public. Big-time foreign depositors might withdraw their dollar deposits from the Philippine banks and move to their money to a more secure place (e.g. Singapore and Switzerland) where the secrecy of their money is highly protected. We must understand that the Country needs money and we do not care where those money come from. We just simply need money--- all Countries actually do. Let's say, the family of the fallen Sadam Hussein still has hidden wealth and decided to deposit all their Billions of dollars in the Philippines, economically, that is a jackpot for the country! Again, we do not care where the money came from, any country just needs CASH, that's it.
The Process goes like this:
1. Investors/Depositors put their money in the Philippines (may be applicable to any Country) a.) To invest or open up businesses and b.) thinking that it is safe from overwhelming scrutiny from their own Governments. Big time investors are encouraged to deposit their money here whether they are angels or even devils.
2. The money goes to a Philippine bank.
3. The money is now in the bank. (but the same cash does not stay there forever, it's being used in other investments...)
4. The bank offers loans and financial assistance to smaller businesses and businessmen and not only that, they offer Housing and other types of loans, where they too earn income and able to generate other loans from bigger banks outside the Country, say HSBC, CITI or even from the world-bank. (of course the bank earns from the Loan fees and other duties paid by the loanee, plus the security of a collateral) One must understand that his or her money in the bank is not there in the bank's vault forever, it's being used for other purposes by the bank owners, this is the reason why they compensate you with minute interests in lieu of using your money for their various businesses.
5. Banks also offer loans to bigger businessmen who would make use of these money for more investments and cash replenishment needs.6. HERE COMES JOBS... REMEMBER THAT BECAUSE BUSINESSMEN WERE ABLE TO SECURE LOANS FROM BANKS THEY WILL BE ABLE TO CREATE, SUSTAIN THEIR BUSINESS.
7. THOUSANDS OR MILLIONS AROUND THE COUNTRY WILL BE GIVEN JOBS... AND OF COURSE SALARY..Let's look at this scenario:
1. The investors lose their confidence to the Philippine Government and its Banks because of lack of protection on secrecy.
2. Mass withdrawals happen from various banks in the Philippines, say from a certain major national bank, a big investor suddenly withdraws because of a certain Political, Judicial or security issue, the bank may must be able to provide the CASH to the depositor upon demand at least within a week. Hypothetically say 5 Tycoons decided to withdraw cash each at $7,000,000,000 (7 Billion US dollars Donald Trump money, or sort of...) That is $35,000,000,000 (35 Billion dollars) Alright this could post an economic disaster.... This kind of disaster must need a personal hand of the President of the Republic to lure these mega-businessmen/depositors not to go -- this is that serious!
Now remember that the money has been offered as loans to smaller businessmen --- the money is dispersed to the hands of smaller businessmen. Well, not just to them but to investments of bank owners such as highrise condominiums, land development, research, and etc.
Where will the bank get the money if ALL INVESTORS/DEPOSITORS withdraw?
DEMAND (of CASH) vs. SUPPLY (of CASH) where SUPPLY is insufficient.
Step 1: They will file for Bankruptcy and Central Bank will try its best to help. Central Bank will co-shoulder the burden of the Philippine banks...
Before bankruptcy is declared, STOCKHOLDERS of banks will panic and would also withdraw their shares, posing another disaster. Having said this, all other Corporations run or co-run by the owners of these banks will have bigger problems because of the STOCKHOLDERS withdrawing their shares as fast as they could to prevent their money evaporating in air.
Banks will not be able to sustain their business, they cannot provide loans anymore and other financial assistance to those starting, growing, or even big businesses that NEED CASH from loans in order to achieve maturity and independence. Owners and Stockholders and their investments too will suffer, Highrise condominiums will not be completed, land developments will be stopped, foundations supported will not be able to receive support and among others...
Who will lose in the end? THOUSANDS IF NOT MILLIONS of Filipinos will lose their job because of several businesses small, medium or large in scale will CLOSE.
It is my hope that I am able to impart some knowledge in finance to those who wanted to understand this very simple and basic information. Now one will understand why we need to protect the DOLLAR SECRECY LAW.
