PDIC: All Valid LBC Accounts, Claims Will be Paid

MB places LBC Dev’t Bank under PDIC receivership All Valid Accounts, Claims Will Be Paid

The Monetary Board (MB) placed LBC Development Bank under receivership of the Philippine Deposit Insurance Corporation (PDIC) by virtue of MB Resolution No. 1354 dated September 9, 2011. As Receiver, PDIC took over the bank on September 9, 2011. PDIC shall gather, verify and validate all bank records and administer and preserve its assets for the benefit of all creditors. PDIC assured depositors of LBC Development Bank that all valid accounts and deposit insurance claims will be paid as soon as possible. It also said that updates will be issued as soon as examination and validation of accounts are completed. The state deposit insurer will conduct a series of Depositors Forums (DF) in the localities where branches of LBC Development Bank are located. The schedules of the DF will be announced as soon as possible in the bank premises and in the PDIC website, www.pdic.gov.ph. During the DF, PDIC representatives will explain the requirements and procedures in filing deposit insurance claims. PDIC advised the depositors to await announcements on the schedules of the DF. LBC Development Bank is a 20-unit thrift bank. Its head office is located at 809 J. P. Rizal St., Poblacion, Makati City. Its 19 branches are located nationwide. Latest available records show that as of June 30, 2011, LBC Development Bank had estimated total deposit liabilities of P6.09 billion comprising one tenth of one percent of the total deposits in the Philippine banking system. Insured deposits amount to P3.73 billion. Number of accounts totaled to 321,516 and 99.4% of the said total number of accounts are fully covered by deposit insurance. Announcements on the schedule of claims servicing operations will be posted on the PDIC website, www.pdic.gov.ph, and in the bank premises.

Notice to Depositors of LBC Development Bank on Conduct of Depositors Forum

Notice to Depositors of LBC Development Bank on Conduct of Depositors Forum

The Depositors Forum is a venue for PDIC to discuss the procedures and requirements for filing claims. Following is a partial schedule of the Depositors Forums: LBC DEVELOPMENT BANK BRANCHES DATE TIME VENUE Head Office For depositors with surnames starting A-L: Thursday, Sept. 15, 2011 2:30PM Makati Coliseum, Mascardo St., Brgy. Singkamas, Makati City Head Office For depositors with surnames starting M-Z: Monday, Sept. 19, 2011 2:30PM Makati Coliseum, Mascardo St., Brgy. Singkamas, Makati City Aklan Branch Tuesday, Sept. 20, 2011 8:30AM APSTA Teachers' Center 19 Martyr Cor. Mabini Sts., Poblacion, Kalibo, Aklan Angeles Branch Wednesday, Sept. 14, 2011 2PM Sangguniang Panglunsod Session Hall, New City Hall, P. Maragul, Angeles City (near Marquee) Baguio Branch Friday, Sept. 16, 2011 9:00AM CAP Development Center Auditorium, 4thFloor CAP Bldg., Post Office Loop, Baguio City Balanga Branch Wednesday, Sept. 14, 2011 3:00 PM Brgy. Tenejero Covered Court, Balanga, Bataan Batangas Branch Wednesday, Sept. 14, 2011 People's Quadrangle, Batangas City (At the back of City Hall) Cebu Branch Friday, Sept. 16, 2011 9:00 AM Sinulog Hall, Public Library, Jones Ave., Cebu (in front of Cebu Doctor Hospital) Iloilo Branch Monday, Sept. 19, 2011 9:00AM Division Social Hall & Cultural Hall, Gen. Luna cor. Mabini St., Iloilo (near Mabini Elem. School) Imus Branch Thursday, Sept. 15, 2011 3:00PM 2nd Floor, Bulwagang Ugnayan (Old Imus City Hall) Laoag Branch Monday, Sept. 19, 2011 City Hall Covered Court, Laoag City Naga Branch Wednesday, Sept. 14, 2011 8:30AM Naga City People's Hall (inside City Hall), J. Miranda Ave., Naga City San Pedro Branch Thursday, Sept. 15, 2011 9:30AM Brgy. Poblacion Covered Court, 20 Ramirez Ave., Cataquiz 1 Subdivision, Brgy. Poblacion, San Pedro, Laguna Timog (Quezon City) Tuesday, Sept. 13, 2011 10AM Covered Court, Barangay Laging Handa, Scout Gandia, Quezon City Urdaneta Branch Thursday, Sept. 15, 2011 9AM Main Gym, Urdaneta City Convention and Sports Center, (near LTO Office), Urdaneta, Pangasinan Vigan Branch Friday, September 16, 2011 2PM Cuta Gym, Barangay 9 corner Rivero St. and V. delos Reyes St., Vigan City Olongapo Wednesday, Sept. 14, 2011 9AM Rizal Triangle Multi-purpose Center, West Bajac-Bajac, Olongapo City Schedule of Depositors Forums for the Head Office and other Branches not covered above will be announced later. The schedule of claims settlement operations (CSO) will be announced later. For more information and updates, please get in touch with PDIC through: PDIC Hotlines (02) 841-4630 and 841-4631 Email at pad@pdic.gov.ph Website: www.pdic.gov.ph

PDIC Statement on LBC Development Bank

Below is the statement published by PDIC for the depositors of LBC Development Bank:  PDIC Statement on LBC Development Bank

September 12, 2011 The Philippine Deposit Insurance Corporation (PDIC) assures the public, particularly depositors of LBC Development Bank, that the Corporation will pay all valid accounts and deposit insurance claims as soon as possible. Latest available records prior to takeover show total deposit accounts of 321,516. We shall announce the start of payout as soon as possible, given the volume of accounts involved. We request depositors to await further announcements on claims operations. PDIC shall give periodic updates as soon as the examination of bank records is complete. These will be posted in bank sites and the PDIC website, www.pdic.gov.ph. Meantime, PDIC is arranging the conduct of Depositors Forums for depositors of the Head Office and all its 19 branches nationwide. During the Forums, we will explain procedures and requirements on filing claims and answer depositors’ queries. Schedules of the Depositors Forums will be announced shortly. These will be posted in the PDIC website, in the bank and branch premises as well as conspicuous places in the localities where the branches are located. Depositors may also call the PDIC Helpdesk at 841-4630 and 4631 or email the Public Assistance Department at pad@pdic.gov.ph. Again, we assure depositors that PDIC will pay deposit insurance for all valid accounts and claims.

LBC Bank Closes

Depositors of LBC Developtment Bank have no idea what was going on for days when they couldn't access their money through atms until it was finally closed by the Banko Sentral ng Pilipinas. The Monetary Board has ordered the LBC Development Bank to be placed under the receivership of PDIC, Philippine Deposit Insurance Corp since last Friday. The bank was deemed insolvent because it could no longer sustain its operations and obligations to its depositors and debtors.

The PDIC said that the LBC Development Bank is a small bank and will not affect the banking industry as a whole negatively. However, LBC being known worldwide to many Filipinos as a courier and remittance company, a lot of OFWs and their relatives have active accounts to its affiliate bank, the LBC Development Bank. It sad to learn that it will take sometime for them to get their deposited money of not more than 500,000 Pesos back through PDIC. In the event that a deposit has more than the insured amount, they would have to wait further for the bank to sell their assets to be used to divide for its depositors.

Notice of insurance claims will be posted at the LBC bank branches and PDIC website www.pdic.gov.ph