LBC Bank Bankruptcy, Under PDIC Receivership

A few months ago there was the "subok na matibay, subok na matatag" in Banco Filipino who closed shop and put under receivership by the Philippine Deposit Insurance Corporation (PDIC), now here's LBC Bank.

I received the latest news of LBC Bank bankrupt and placed under PDIC receivership from trusted contacts in the banking industry. LBC Bank shutdown their system yesterday.

Question: how can LBC bank clients and depositors get their money back?
Answer: Just wait for announcements from PDIC or posted on your LBC Bank branch for announcements. You can get your money back PhP500,000.00/accound holder (not per account) but in excess of 500k, you need to wait and cross your fingers if LBC still has funds left to pay you as the maximum insurance is really PhP500k/depositor.

stay tuned for other LBC Bank news later

Banco de Oro (BDO) Holy Week 2011 Downtime/Offline due to Systems Upgrade

BDO, the Philippines' largest bank in terms of assets will be temporarily offline on Good Friday till early Black Saturday for a planned systems upgrade.

BDO's official email announcement:

" The use of BDO ATM cards will not be available in all ATM machines and payment terminals in retail stores from 11PM of April 22 (Friday) to 7AM of April 23 (Saturday). For BDO Dollar Account Holders, the use of ATM cards will not be available from 11PM of April 22 (Friday) to 6PM of April 23 (Saturday).
Bills payment using ATM, Internet, Mobile Internet, Mobile and Phone Banking will not be available from 11PM of April 20 (Wednesday) to 11:59PM of April 23 (Saturday).
Other transactions using Internet, Mobile Internet, Mobile and Phone Banking will not be available from 10PM of April 22 (Friday) to 6PM of April 23 (Saturday).

Clients are encouraged to schedule their transactions prior to the commencement of the systems upgrade to avoid any incovenience.

For any inquiries regarding this upgrade, clients can contact BDO thru the following:

Customer Contact Center: (+632) 631-8000, [email protected]
Domestic Toll-Free Nos.: 1-800-10-6318000 and 1-800-3-6318000(Digitel)
International Toll-Free No.: (Intl. Access Code) + 800-8-6318000

BSP, Banco Filipino Bank Run, Bankruptcy or Bank Holiday?

Last Tuesday, Banco Filipino depositors, clients and account holders were surprised to see all banco Filipno branches closed and only security guards at the baking premises to tell irate people to go back when Banco Filipino will open again.

TV news of Banco Filipino and BSP now feature Perfecto Yasay, Banco Filipino's vice-chair, blames BSP for Banco Filipino's "bankruptcy"...

Want to know the truth about Banco Filipino and other latest news? Well it's such a complicated and long history behind the battle between the bank and the bank regulator.

The rift between Bangko Sentral ng Pilipinas (BSP) and Banco Filipino dates back to the time when BSP (thru the former central bank of the Philippines) ordered BF closed but later re-opened. The Supreme Court already ruled the BSP closing of Banco Filipino was arbitratry.

Banco Filipino has a pending case against BSP because of this asking for compensation while it is also BSP job to help banks asking for assistance, part of their job as regulators.

Will Banco Filipino re-open and not close temporarily and not permanently? I think so. They have been closed before and will be able to do it again. They've been through tough times and also did you notice the Philippine Deposit Insurance Corporation (PDIC) did not step in?

Banco Filipino is not really bankrupt, they still have PhP18,000,000,000.00++ in equity but they got an overdraft last weekend and so wanted to borrow P3B from the BSP that BSP didn't provide. Banco Filipino decided the next day to temporarily close their bank.

I suggest in the best interest of Banco Filipino clients and the banking industry in general, BSP and banco Filipino iron our their differences to help Banco Filipino out of the current mess. Enough of the bickering on national TV.

Note:

I'm from the banking industry, but not a Banco Filipino insider. I learned about Banco Filipino early this week but didn't disclose them in this pathetic blog (that nobody reads anyway, unlike my main travel blog), due to sensitivity of the Banco Filipino news (but i'm privileged enough to be aware of some of the real scoop). The information has been made public already with Banco Filipino and BSP people, lawayers, trading barbs with Banco Filipino claiming it's BSP's fault and the source of the smear campaign against Banco Filipino. As of now, Banco Filipino branches are closed and ATMs offline to stave off mass withdrawals of depositors and avert a bank run.

Latest News Banco Filipino Bank Run, Banco Filipino Bank Holiday, Banco Filipino Bankruptcy, Banco Filipino Bankcrupt. How to withdraw your money deposits from Banco Filipino

BancNetOnline.Com has a New Look

If you're one of those anonymous users of BancNet Online (http://www.bancnetonline.com), you may have noticed the new web page layout of BancNet Online.

No major enhancements to the site for you can still do the same old online banking transactions with it:

Balance inquiry
IBFT (interbank funds transfer)
Bills Payment (even pay SSS monthly contributions online)
Activate Mobile Banking (SMS and i-Can mobile banking)
Online shopping via e-merchants/partners

no registration required, simply use your bank card number (or account number for IBFT) and ATM PIN...it's safe and secure as long you keep your PIN a secret with you.

BPI ATM and BPI Express Online are Offline!

If you're a Bank of the Philippine Islands client and needed to withdraw money from your payroll these last few days chances are you'll find yourself unable to withdraw from your ATM card even transact online via BPI Express Offline

according to my reliable inside sources, BPI is really having problems with their ATM switch that's causing timeouts, disconnections and the off-line messages as well as error messages and login problems on BPI Express Offline. There are reportedly many consultants handling the problem.

No official word and press releases yet from BPI but I don't think they're very good at handling media people much like the way Metrobank downtime I blogged about sometime ago that mainstream media didn't pay attention too due to the media savvy PR people.

Just watch out for the latest news and updates once I confirmed it's BPI's Base24 switch that's acting up causing BPI downtime.

BSP Circular 649: E-Money/E-Wallet Regulation

A few months ago I received a draft of the proposed BSP Circular on the regualtion of e-Money and was released last March 9 with effectivity 15 days later

Circular 649 provided the regulatory framework over the fast-growing electronic money business in the Philippines to provide protection for consumers and to promote innovations in fund transfer mechanisms that benefit Filipino consumers. The Circular prescribed the minimum requirements for each Electronic Money Issuer (EMI) category to ensure that the risks inherent in e-money business are mitigated and that EMIs adhere to prescribed levels of safety, security and soundness. Provisions include the following:

a. EMIs shall put in place a system to maintain accurate and complete record of e-money transactions and other pertinent information

b. E-money shall only be redeemed at face value. It is not considered a deposit, hence, it is not insured with the Philippine Deposit Insurance Corporation;

c. E-money instruments shall be subject to aggregate monthly load limit of PhP100k

d. EMIs shall ensure compliance with applicable requirements of the Anti-Money Laundering laws, rules and regulations (e.g. (Know Your Customer, KYC and Suspicious Transaction Reports (STR))

e. EMI's should be stock corporation with capitalization of PhP100M

Circular 649 is for the protection of the public against fly-by-night e-money companies.

Complete text of BSP Circular Number 649 can be downloaded from BSP official website.

Phishing Alert: Chinabank Online

First there was Metrobank Direct, then BPI, Asia United Bank, Equitable -PCI (now Banco de Oro) that got hit by phishers wishing to earn money the wrong way from unsuspecting online bankers

I predicted my own bank to be targetted by phishing people and there it was...a phishing email was sent to numerous email recipients where the senders kept their fingers crossed that a few uninformed souls will actually login to their Chinabank Online account.

For your info, China bank Online requires two passwords: one for login and another for transactions (called transaction password). The two can be made the same (i know it's weird, but it can really be set to be the same thus defeating the purpose)

Using two passwords is not the same as two-factor authentication...

Chinabank released advisories warning their clients that they won't send emails requiring acount holders to login to their account.

No bank does that, only evil miscreants do!

Related Post:
Chinabank Swift Code
Chinabank Bank Code for Paypal

Philippine Rural Bank Holidays and Closures by BSP

We love holidays where no school and office to report to but it's a different matter whan it's a bank holiday for your bank.

In these times, several rural banks, some of them part of the Legacy group were "padlocked and placed under receivership by the Philippine Deposit Insurance Corp" :

Rural Bank of Parañaque
Rural Bank of Bais (Negros Oriental)
Pilipino Rural Bank (PRBI Cebu)
Rural Bank of San Jose (Batangas)
Philippine Countryside Rural Bank Inc. (PCRBI)

Rural banks that have declared a bank holiday:

Dynamic Bank (Rural Bank of Calatagan)
San Pablo City Development Bank
Nation Bank (Bacolod City)
Rural Bank of Carmen (Cebu) Inc.
Rural Bank of Calatagan (Batangas) Inc. (now Dynamic Rural Bank)
Rural Bank of DARBCI Inc.
Rural Bank of Kananga (Leyte) Inc. (now First Interstate Rural Bank)
Rural Bank of Bisayas Minglanilla (now Bank of East Asia)


Rural Bank of Subangdaku (RBS Bank) said they suspended business but it was not a bank holiday.

Note that for depositors of the rural banks to get their money back, just wait for official announcements from the BSP and PDIC. Note that deposits are insured up to P250,000.00 per depositor.

Lastly, thise news shouldn't sow panic on the Philippine Banking industry-- most banks are stable and liquid -- and the things that struck US banks won't hit us since banks are too strict with creditors.

Isn't it too hard to get a loan here?

Insolvent G7 Bank of Naga City Closed by BSP

Two weeks ago I received a call from a bank executive inquiring if I was the one who asked her about a certain G7 bank closed by BSP. I replied no and just informed me that I already knew about the closure of the Naga City-based bank by the Bangko Sentral ng Pilipinas.

It's fortunate that the Philippine Daily Inquirer also reported about the closure due to the bank's financial woes that "lacked assets to service liabilities."

Note that all deposits are insured by PDIC up to P250,000.00 so there's nothing to worry about if your deposit falls under the insured amount. Amounts beyond the amount need to wait if you can still claim part of it once assets are disposed of

Internet Banking, IDS/IPS and Application Security

I received highly-reliable reports that two large Philippine banks' online banking system were compromised. A third bank's website got vandalized. I can't divulge the names of the banks but I'm just worried about it. One of them I have a pending application for a card that I'm thinking of just not pushing through with.

one of the banks I know have expensive and sophisticated Intrusion Prevention Systems (IPS) in place since I personally know their Information Security Officer and IS Auditors. But their "pride" took a beating at this latest problem of theirs.

I would like to point out that no amount of obscurity, Firewalls and IPS/IDS can ever compensate for a poorly designed online banking application.

Web application security is still not a hot topic here for a simple SQL injection attack can access confidential information there.

Chinabank High Interest Deposit Certificate Offering

Two weeks ago, I received a text message from a Chinabank insider informing me of a special product offering with much higher interest rates than their regular time deposits.

The message said "Good day, chinabank will be launching a new product called the Long-term Negotiable Certificates of Deposit (LTNCD). Minimum amount is P50t. PDIC insured. Term is 5 years. NO withholding tax. Indicative rate projected at 8% to 8.5%..an account opening fee (1 time charge) at P75 per cert will be charged and account maintenance fee of 0.025% per annum based on face value whichever is higher deducted from the gross interest due on the LTNCD on interest dates. Quarterly interest payment...offering period starts on July 28 to August 8, 2008. Please reply ASAP if interested cause it is 1st come 1st served..."

I replied immediately upon receipt of the message to express my intention to invest part of my savings. But as fate would have it, I forgot my passbook the following Monday and decided to bring it the following day. The morrow, I was able to bring my passbook but totally forgot about going to the bank when my friend from Chinabank dropped by the office and asked me if I was able to open an account to which I replied no. She just told me that it's already closed the day before due to the high turnout and already reached P5B.

Oh well, the planned early morning trip to the bank didn't materialize and thus missed an excellent investment opportunity.

Better luck and be ready next time, Paetechie!

OMB and K-Bank Merger

A few months back, I received news from insiders about an impending merger between the Antipolo-based rural bank, Opportunity Microfinance Bank (OMB) and Iloilo's Kauswagan Bank (K-Bank) where the latter is buying the former and will be headquartered in Iloilo including OMB's ATM infrastructure.

The surviving entity's name would be: OK Bank

Can't think of a better name, eh?

Chinabank ATM Downtime

Chinabank's ATMs are offline today with a handful of my officemates complaining since our payroll accounts are there. Chinabank Online is ok but session timeouts are making it a pain in the ...One of my officemates was transfering P20k to an account but due to the timeouts, had to repeat it twice not knowing the first two fund transfers were successful. Ended up transferring P60k, P40k more than the agreed amount.

No official word on the downtime is available as of this moment. Will try to ask my contacts there.

It seems Chinabank has been experiencing frequent downtimes lately.

Metrobank Downtime, Offline ATM Problem

The country's largest bank in terms of assets, Metropolitan Bank and Trust Company, has been down since yesterday due to system problem. I can't exactly say what is the cause of the problem out of courtesy to my well-placed contacts inside the bank.

I was informed of this yesterday and up to now all their ATMs are off-line right smack on a coming payday. An update just came out that issuer transactions will be up today.

This problem involves Metrobank subsidiary, PSBank.

Just imagine the huge loss in transactions for on-us/proprietary, switched/interbank and credit card cash advances. But the biggest loss possibly in on their own customer confidence in them.

Related Post:

Metrobank Bank Code = 010269996

Bankwise Closed by BSP Monetary Board

I got a call from a banking industry contact inquiring about the status of Bankwise, a Makati-based thrift bank with braches in Mandaluyong, Las Piñas, Cebu City, Davao City, and Quezon City of which news was released by the Inquirer as closed by the BSP's MB due to bankruptcy.

Formerly called Dharmala Bank, it's associated with Dante Ang.

With the PDIC receivership, depositors of the insolvent bank are insured up to P250k per depositor.

Philippines' Largest Banks in Terms of Asset

Largest Bank in terms of Asset:

the latest news about BDO overtaking Metrobank was revealed to me by my Metrobank contact last december last year:

1. Banco de Oro (BDO) (mostly due to the merger with Equitable PCI Bank)
2. Bank of the Philippine Islands (BPI)
3. Metrobank
4. Land Bank of the Philippines (Landbank)
5. Philippine National Bank (PNB)
6. Development Bank of the Philippines (DBP)

Other large Philippine Banks:
Chinabank, RCBC, Allied Bank, Union Bank, UCPB, Chinatrust Bank

Note: this does not take account the impending merger of PNB and Allied Bank and also of DBP and Landbank.

There's uncertainty on the 2nd and third largest banks due to lack of data but will be updated once information is available

UPDATED: February 2009