THE Bangko Sentral ng Pilipinas (BSP) put the LBC Development Bank under receivership of the Philippine Deposit Insurance Corp., saying that the bank could no longer pay its liabilities.

BSP Gov. Amando Tetangco cited Section 30 of Republic Act 7653 or the New Central Bank Act as the reason behind the bank’s closure.

The law states that a bank or quasi-bank will be put under receivership and liquidation if it has insufficient realizable assets, as determined by the BSP, to meet its liabilities or if it cannot continue in business without involving probable losses to its depositors or creditors.

The PDIC, being the receiver, shall immediately gather and take charge of all the assets and liabilities of the institution, administer the same for the benefit of its creditors, and exercise the general powers of a receiver under the Revised Rules of Court but shall not, with the exception of administrative expenditures, pay or commit any act that will involve the transfer or disposition of any asset of the institution.

The PDIC assured LBC depositors that all valid accounts and deposit insurance claims will be paid.

“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.,” PDIC said on Monday.

PDIC officials said that they will arrange depositors’ forums at the bank’s head office and all its 19 branches nationwide to explain procedures and requirements on filing claims.

For inquiries, the PDIC urged depositors to call the PDIC Helpdesk at 841-4630 and 841-4631 or email the Public Assistance Department at This e-mail address is being protected from spambots. You need JavaScript enabled to view it. .

On September 9, the PDIC took over LBC Bank upon order from the BSP through Monetary Boad Resolution 1354.