STATE-RUN Philippine Deposit Insurance Corp., receiver of closed banks, invited interested investors to participate in the pre-qualification process for the rehabilitation of GSIS Family Bank.
PDIC said in a statement Tuesday interested parties had until today to submit their letters of intent to rehabilitate the bank and the required supporting documents.
A 22-unit thrift bank, GSIS Family Bank was ordered closed by the Monetary Board of Bangko Sentral ng Pilipinas earlier. It was taken over by PDIC on May 13, 2016.
“Investors may be banks or non-bank corporations. Meanwhile, supporting documents include… list of shareholders and their respective shareholdings and nationalities [and] evidence of financial capacity,” PDIC said
In case the investor is a consortium, all the supporting documents for each member of the consortium are required to be submitted.
PDIC said investors would be evaluated based on a set of pre-qualification criteria. Banks that intend to participate in the rehabilitation of the GSIS Family Bank will be required to have a minimum capital adequacy ratio of 12 percent before the acquisition and the capacity to infuse necessary capital to ensure that the 12 percent CAR requirement is complied with, if it fell below 12 percent 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 framework of Bangko Sentral ng Pilipinas. In case of foreign banks, they must be authorized to operate as a bank in the Philippines.
“On the other hand, 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,” it said.
They should have capital of at least P2 billion or adequate to meet the capital requirement for the rehabilitation of GSIS Family Bank; current asset to current liability ratio of 2:1; and unqualified audit opinion by independent auditors on the results of operations for the last three years.
Qualified third party investors are required to execute a confidentiality agreement and post a P5 million bond prior to the conduct of the due diligence on August 1, 2016.