BSP okays BDO takeover of Export Bank

By Lawrence Agcaoili
 (The Philippine Star)

MANILA, Philipines - The Bangko Sentral ng Pilipinas (BSP) has given Banco de Oro Unibank Inc. (BDO) of Henry Sy the greenlight to take over the ailing Export and Industry Bank Inc. (EIB).
BSP Governor Amando M. Tetangco Jr. said the approval of the acquisition was in line with banking consolidation and was consistent with the preservation of the stability of the financial sector.

“This is consistent with preserving financial stability and in line with banking consolidation,” Tetangco stressed.

Under the approval, the BSP chief said BDO would acquire all the assets of EIB but at the same time assume all the liabilities including deposits of EIB.
“The transaction involves the acquisition by BDO of all the assets and its assumption of all liabilities including all deposits of EIB,” he added.

The transaction would also have to be approved by the state-run Philippine Deposit Insurance Corp. (PDIC).
Aside from acquiring the assets of the ailing bank including its 50-branch network, BDO would also buy selected assets and assume about P30 billion in liabilities including P20 billion in deposits as well as the P9 billion in outstanding loans to PDIC. Read more...