Banks and remittance centers have relocated branches to the provinces and towns with the rise of the need for overseas Filipinos of sending home money to their waiting families in a much quicker mode. The town of Calabanga got a share of the “boom” with the opening of branches around the commercial area like the MLhuillier at barangay San Antonio which is a stone’s throw from the Producers Bank branch, to name a few.
These arrangement is beneficial for the families concerned instead of traveling farther to Naga city where banks are concentrated just to get the regular allotment. It also lessens the risk of losing the hard earned money from untoward incident, like getting snatched or the likes.
Meanwhile, the past weekend, one popular bank which has a branch in the Bicol region was been taken over by the Philippine Deposit Insurance Corporation (PDIC). That was after the Central Bank’s Monetary Board came into full determination that it is confronted with liquidity problems.
We are referring to the LBC Development Bank which the PDIC has already taken over its assets and liabilities. Banks encountering liquidity problems are taken over by the PDIC for receivership to quickly protect its depositors and creditors. Per MB Resolution No. 1354 dated September 9, 2011, the PDIC took over the bank on the same day.
According to PDIC, LBC Bank has P6.09 billion in deposits and 321,516 accounts as of June, 2011. PDIC revealed that the insured deposits with LBC Development Bank made up a tenth of one percent of total deposits in the country’s total banking system. About P3.73 billion of the deposit while 99.4 percent of the total number of accounts are fully covered by deposit insurance.
There should be no cause for depositors to worry over their money as under PDIC’s charter, deposits worth P500,000 or below are covered by insurance. Owners of deposit accounts worth P10,000 or below need not even apply for insurance claims to get their money.
The LBC Bank has a branch in Naga city and with head office on JP Rizal St. in Makati city, metro Manila. The thrift bank has 18 more branches nationwide.