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LBC Bank placed under receivership


LBC Development Bank, a unit of the LBC Group, has been placed under receivership of the Philippine Deposit Insurance Corp. (PDIC).

In a statement over the weekend, PDIC said it took over the assets and liabilities of LBC bank after the Monetary Board of the central bank determined that the institution was plagued by liquidity problems.

“All valid accounts and deposit insurance claims will be paid as soon as possible,” PDIC said in a statement.

LBC Development Bank, with head office on JP Rizal St. in Makati City, had 19 branches nationwide.

As of end-June this year, total deposits placed with the bank amounted to P6.09 billion. Of the amount, P3.73 billion is covered by insurance, PDIC said citing bank records.

In terms of number of accounts, there were 321,516 as of June, 99.4 percent of which are fully covered by deposit insurance, said PDIC.

The government insurance agency said the placement of the thrift bank under its receivership would not significantly affect its resources. PDIC noted that the insured deposits with LBC Development Bank made up only a tenth of one percent of total deposits in the country’s banking system.

Under PDIC’s charter, deposits worth P500,000 or below are covered by insurance. Deposits in excess of the amount may or may not be paid depending on the amount to be raised from the liquidation of a closed bank’s assets.

PDIC will conduct forums in areas where branches of LBC are located so that depositors of the bank will know how to claim insurance.

Owners of deposit accounts worth P10,000 or below need not apply for insurance claims. In their case, PDIC will simply mail notices to them and they can withdraw from designated redemption offices, like branches of Land Bank of the Philippines.

The placement of LBC Development Bank under receivership may come as a surprise to the bank’s depositors given the institution’s track record.

LBC Bank was previously awarded the “superbrand” status by Superbrands Philippines Council, which cited it for being one of the most reliable and trusted brands.

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Tags: LBC Development Bank , LBC Group , liquidity problems , monetary board , Philippine Deposit Insurance Corp. (PDIC) , under receivership

  • Anonymous

    ang lakas nyang mga araneta na yan. araneta and may ari ng lbc bank. araneta ang presidente ng pdic. tiklop pala and bsp sa araneta. kawawa ng mga ngtyagang mag ipon. mga magnanakaw. its all about conspiracy of the oligarchs and the bsp. kawawa ang publiko. pinapa deposito para sa future pagnanakawin naman. buti pa sa gobyerno may plunder, ang mga aranetang ito maswerte. lusot sa kaso. may lbc express pa para manloko ng manloko. kawawa ng taong bayan. kaya pala may mga npa. bulok kasi ang sistema. madumi.

  • Anonymous

    mag ingat na kayo jan sa lbc na yan. kung hindi nila kaya hawakan ang pinaghirapang pera ng mga depositors nila how much more jan sa mga pera a package na pinapadala sa kanila. parepareho lang mga araneta at delos angeles ng legacy. mga manloloko

  • http://www.facebook.com/profile.php?id=100001085824114 Mitch So

    It is indeed unfortunate for something like this to happen specially to a big and popular company like LBC. However, I believe that their courier service is different from the bank that they have. They still do have their fast and reliable courier service and they are my personal choices when it comes to sending packages. So far I haven’t have had any problems with regards to shipping items through them. Another reason is that so far there hasn’t been any late deliveries according to my customers.

  • http://pulse.yahoo.com/_ZVPMGG3YEFAOBEOKH7Q4LQ5X6E DJ

    Well, based on experienced, PDIC is not very prompt when it comes to returning money. Ilang balik pa kami sa office at ilang tawag at ilang pabalik balik na documents before I could recieve the first half of one of my accounts… it took 2 years. then now, 4 years na, wala pa rin ung kalahati…. I feel bad for all the victims…

  • Anonymous

    lbc loses the credibility as a premiere courier as well.sending your cargo to reach the destination is uncertain as well.di nga kaya pangalagaan ang pera ng mga depositors sa pera padala pa at cargo?

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