THE Philippine Deposit Insurance Corp. (PDIC) has started processing claims of the 1,909 affected depositors of the Lapu-Lapu Rural Bank (LLRB) in Carcar City, which was placed under receivership last month.
Antonio Panucat, 75, and his wife Avelina were some of those who were affected by the closure of the LLRB.
Both farmers, the Panucats said that they deposited more than P40,000 in bank after earning from their recent rice harvest.
But the couple was stunned upon receiving the report that the LLRB, which has been in operation since 1959, had suddenly closed.
“Wala gyud mi katuo nga musirado siya kay dugay na kaayo si ga-operate dayun wala gyud siya nawagtangan ug kliyente (We did not expect it to close because it has been here for so long and has never run out of clients),” Antonio said.
He hopes that PDIC will quickly provide them their money back, as they want to use it put up a small business.
Another depositor, Gertrudes Lopez, 78, came to Carcar City from Aloguinsan just to check if the reports were true.
But she said that she only had P6,000 left in her bank account just before LLRB closed last Jan. 28.
Lopez said that she had planned to deposit around P20,000 worth from her sale of copra but she was surprised when she was told by the security guard from LLRB that they were no longer accepting deposits.
In a separate interview, Carcar City Mayor Nicepuro Apura said that he was saddened that the bank had suddenly closed.
Apura said he had never thought that the bank would close, as it has been operating since he was a child.
Romeo Mendoza Jr., PDIC senior vice president for deposit insurance section, told Sun.Star Cebu that they are in the process of checking all valid deposits to insure those up to P500,000.
For deposits above P500,000, Mendoza said that depositors will need to put up a claim against the bank’s assets to claim what they’ve lost.
They are also checking if there are depositors who still have outstanding obligations to LLRB and encouraged them to pay up.
Mendoza said that they are giving depositors until Feb. 17 to 18 to settle their claims in Cebu City.
After those dates, PDIC will entertain claims in their office in Makati City.
For claimants with deposits of more than P100,000, they are required to prepare the needed documents like the original evidence of deposits such as passbooks, certificate of time deposit, bank statement, unused checks and ATM cards.
They also need to provide two valid identification cards.
They can submit these requirements to the PDIC help desk at the Carcar City gym or through mail sent to the PDIC Claims Processing Department in Makati City.
Mendoza said that they are also awaiting word from the Bangko Sentral ng Pilipinas (BSP) Monetary Board if there is a plan to rehabilitate LLRB.
If the BSP Monetary Board doesn’t rehabilitate LLRB, the bank will be subjected to liquidation.
Based on Section 30 of the law which creates the BSP, reasons for placing a bank under receivership includes undercapitalization, liquidity problems, failure to follow orders from the Monetary Board and putting depositors at risk through their transactions.
The latest records revealed that as of December 2015, LLRB has total deposit liabilities of P67.6 million.
Total insured deposits amounted to P60.7 million or 89.8 percent of total deposits.
Mendoza said that as of now, they are processing the claims of depositors who have valid deposit accounts less than P100,000.