LBC Development Bank has been placed under receivership of the Philippine Deposit Insurance Corp.
PDIC announced that it took over the assets and liabilities of LBC bank after the Monetary Board found out that it was plagued by liquidity problems. The government insurance agency assured that all valid accounts and deposit insurance claims will be paid as soon as possible.
LBC Development Bank 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. PDIC said the placement of the thrift bank under its receivership would not significantly affect its resources.It 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.
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 development came as a surprise since the bank was previously awarded the “superbrand” status by Superbrands Philippines Council for being one of the most reliable and trusted brands.
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