PDIC takes over LBC Dev't Bank

[Monseratto]

Same owners as LBC Express. Same problem as Banco Filipino. Daming remitances na ipit...

PDIC takes over LBC Dev't Bank | ABS-CBN News | Latest Philippine Headlines, Breaking News, Video, Analysis, Features

MANILA, Philippines - LBC Development Bank has been placed under the receivership of the Philippine Deposit Insurance Corporation (PDIC) last Friday, due to concerns about the thrift bank's liquidity problems.

As of Monday morning, there were 10 depositors who were inquiring at the LBC main branch in Makati. They were surprised to find the bank was ordered to be closed.

The Monetary Board issued MB Resolution No. 1354 dated September 9, allowing the PDIC to take over the bank's assets and liabilities, after determining it has been plagued by liquidity problems.

However, the PDIC assured all valid accounts and deposit insurance claims will be paid as soon as possible.

Under PDIC rules, 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.

Owners of deposit accounts worth P10,000 or below need not apply for insurance claims, since they will automatically be given notices by mail. Then, they can withdraw money from designated redemption offices, such as branches of Land Bank of the Philippines.

The PDIC will also conduct forums with depositors in LBC branches nationwide. The schedule will be posted on PDIC: Philippine Deposit Insurance Corporation Official Website.

LBC Development Bank, a thrift bank unit of the LBC Group, has a head office on JP Rizal St. in Makati City and 19 branches nationwide.

The PDIC said as of the first half of the year, total deposits at the LBC Bank reached P6.09 billion, of which P3.73 billion is covered by insurance. PDIC said this comprised one tenth of one percent of the total deposits in the Philippine banking system.

There were 321,516 accounts at the bank as of June, 99.4% of which are fully covered by deposit insurance, the PDIC said.

PDIC said placing the thrift bank under its receivership would not significantly affect its resources. - with a report from Jacque Manabat, ABS-CBN News

[uls]

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LBC Development Bank is the financial services arm of the LBC Group of Companies, with branches situated in key cities nationwide. LBC Development Bank is an equity member of the Megalink ATM consortium.

LBC Development Bank has recently been awarded "Superbrand" status by the Superbrands Philippines Council as one of the most trusted and reliable brands in the countryand as 2004 Top Development Bank by the National Consumer Affairs Foundation.

haha

so much for their "Superbrand" status

[ghosthunter]

A "Superbrand" status is basically bought by the company who wants it. Our company was also offered it a few times in the last few years as well for a number of our products we distribute.

[tidus1203]

So getting a Superbrand is like obtaining diploma from Recto University!

[ghosthunter]

So getting a Superbrand is like obtaining diploma from Recto University!

Yes. Except "superbrands" is a bit more expensive certification.

[tidus1203]

For depositors like Benjamin Vallorta, who have more than half a million deposited in the bank, it is now hard to trust small and relatively unknown banks that give high interest rates.

LBC Dev't Bank was insolvent, says BSP | ABS-CBN News | Latest Philippine Headlines, Breaking News, Video, Analysis, Features

Another overly greedy depositor bites the dust!