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