Finance


PDIC seeks investors for GSIS Family Bank




Posted on July 20, 2016


STATE-RUN Philippine Deposit Insurance Corp. (PDIC) has called on interested investors in a bid to rehabilitate the shuttered GSIS Family Bank, following failed attempts to sell the bank to a private investor.

GSIS Family Bank was shuttered in May. -- WIKIMAPIA.ORG
PDIC ordered shut the thrift bank controlled by state-run pension fund Government Service Insurance System (GSIS) in May, shortly after the Bangko Sentral ng Pilipinas’ (BSP) Monetary Board issued a resolution placing the lender under receivership.

“The PDIC, Receiver of the closed GSIS Family Bank, called on interested investors to participate in the pre-qualification process for the rehabilitation of the bank,” it said in a statement yesterday.

It noted that interested parties have until July 20 to submit their letters of intent to rehabilitate the bank and the required supporting documents. Investors may be banks or non-bank corporations.

Investors will be evaluated based on a set of pre-qualification criteria. The PDIC has set pre-qualification criteria for interested parties, including a minimum capital adequacy of ratio (CAR) for banks of 12% before the acquisition as well as capacity to infuse the necessary capital to ensure that the 12% CAR requirement is complied with if it will fall below the cap after acquiring GSIS Family Bank.

Interested investor-banks must have no findings of unsafe and unsound banking practices and are not under the Prompt Corrective Action (PCA) framework of the BSP. In case of foreign banks, these must be authorized to operate as a bank in the Philippines, PDIC said.

Investors which are non-bank corporations must be authorized to do business in the Philippines, profitable for the last three years of operation and compliant with foreign ownership limit/ceiling in a bank as stated in the General Banking Law. They should also have capital of at least P2 billion or adequate to meet the capital requirement for the rehabilitation of GSIS Family Bank.

In the invitation to prequalify as earlier published, PDIC advised that after the pre-qualification process, investors which met the pre-qualification criteria shall be notified of their eligibility to further participate in the rehabilitation of GSIS Family Bank.

“Qualified third party investors shall be required to execute a confidentiality agreement and post a P5-million bond prior to the conduct of the due diligence on Aug. 1,” PDIC said.

As earlier published, documentary requirements should be submitted on July 20, 2016 to Ms. Ana Rosa E. Viray, department manager of PDIC’s Receivership and Bank Management Department I located at the 5th Floor, SSS Building, Ayala Avenue corner V.A. Rufino St., Makati City.

The Pasig City-headquartered bank has 22 branches -- 11 branches in Cavite, seven in Metro Manila, two in Laguna and one in Bulacan. -- I.C.C. Delavin