MANILA, Philippines - The Philippine Deposit Insurance Corporation (PDIC) on Monday assured depositors of LBC Development Bank that all valid accounts and deposit insurance claims will be paid as soon as possible.
The thrift bank owned by the LBC Group was placed under receivership of the PDIC last September 9, due to its liquidity problems.
"We shall announce the start of payout as soon as possible, given the volume of accounts involved," PDIC said, in a statement. "We assure depositors that PDIC will pay deposit insurance for all valid accounts and claims."
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.
Latest available records prior to the takeover of the bank show total deposit accounts are at 321,516.
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.
Depositors were asked to await further announcements on claims operations. "PDIC shall give periodic updates as soon as the examination of bank records is complete," it said.
Updates will be posted on the bank website and the PDIC website, www.pdic.gov.ph.
PDIC is also organizing depositors forums for LBC Bank depositors, where they will be informed about procedures and requirements on filing claims.
The schedule of the depositors forums will soon be posted on the PDIC website, in the bank and branch premises and 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 PDIC Public Assistance Department at email@example.com.
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.
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. - with a report from Jacque Manabat, ABS-CBN News