The chairman of the troubled Export and Industry Bank wants to sell all the banks assets and liabilities to Banco De Oro Unibank Inc.
“To us, the best commercial solution is to allow BDO to acquire the bank,” Export and Industry Bank chairman Jaime Gonzales said.
If the bank is liquidated, government will have to pay its over 50,000 depositors. Data shows that only up to P4-billion worth of deposits is
covered by insurance while bulk at P10 billion is uninsured. Thus, the thousands of depositors will go home with only P500,000 each.
But a deal with BDO would mean saving both the depositors and government for losses and anxiety since the country's largest bank would be
assuming all the liabilities.
Philippine Deposit Insurance Corp., appointed by the BSP as the Exportbank receiver, has received a proposal from BDO regarding its renewed
bid to acquire Exportbank.
Prior to the receivership, the BSP approved an incentive package for BDO offering 30 branch licenses outside of the existing 50 branch licenses
held by the troubled commercial bank. It will likewise get a “financial relief” with regards the anticipated liabilities BDO will inherit from the acquisition worth over P10 billion.
Majority of the existing 50 branches are located in the so-called restricted areas, which are basically located in the deposit-rich Metro Manila areas. 30 new licenses will also be for the restricted areas.
PDIC said it is set to tap a financial auditor to determine the valuation of Exportbank. It pointed out that it has 90 days to determine whether the proposal submitted by BDO is most advantageous to depositors, creditors, and taxpayers, since BDOs proposal has certain conditions.
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