LBC Devt Bank closed, depositors dismayed

Depositors of the LBC Development Bank expressed their dismay on Monday upon learning that the bank was indefinitely closed and placed under the receivership of the Philippine Deposit Insurance Corp (PDIC). The Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) has placed LBC Bank under receivership of the PDIC, which took over the bank on September 9. In an interview with Sam Nielsen over radio dzBB, a depositor said, “Nagulat ako nang naka-flash sa TV nagsara ang LBC Bank, napakalaki niyan." According to the report, as of 9:30 a.m. Monday, depositors were at a loss with no representatives from either LBC Development Bank or PDIC to explain what had happened to the bank. GMA News Online tried to reach LBC Development Bank for comment but calls to the bank headquarters were unanswered as of posting time. In a statement, the PDIC, assured depositors that all valid accounts and deposit insurance claims "will be paid as soon as possible." Depositors will be given updates as soon as accounts are validated, the PDIC said. Process for insurance claims PDIC will reportedly conduct a series of depositors’ forum in LBC Bank branches and during which depositors will be briefed on the process and requirements for filing deposit insurance claims. With last week’s MB Resolution No. 1354, the central bank tasked PDIC to gather, verify and validate all bank records and administer its assets for the benefit of all its creditors. LBC Development Bank, a 20-unit thrift bank, reportedly had P6.09 billion in deposit liabilities as of June 30, or one-tenth of 1 percent of the total deposits in the Philippine banking system. LBC Development Bank is the financial services unit of the LBC Group of Companies, apart from the logistics and a money remittance subsidiaries. LBC Development Bank was established by the LBC Group after acquiring a majority stake in Banco Real Development Bank (BRDC) in 1995. In turn, BRDC was the former Pasay Rural Bank Inc. — founded in 1956. Pasay Rural Bank was bought by a group of businessmen and converted it into BRDC in 1984. Last March, the Bangko Sentral also placed Banco Filipino Savings & Mortgage Bank under the receivership of PDIC after the bank could no longer settle its liabilities in the course of its daily operations. — VVP/VS, GMA News