The shuttered Export & Industry Bank. PHOTO BY ERWIN AGUILON/RADYO INQUIRER
MANILA, Philippines—Export and Industry Bank, which was ordered closed last April due to insolvency, is expected to be sold next month.
This was reported by the state-owned Philippine Deposit Insurance Corp., which announced Tuesday that two separate biddings involving EIB have been set in October. The first bidding, which is targeted to be held two weeks from now, is for EIB’s commercial banking license. The winning bidder will be given the right to operate a commercial bank. The second bidding on October 18 is for the branches and other assets of EIB.
PDIC said that separately selling the bank’s assets and its commercial banking license was prudent as doing so could help generate more revenues.
Given existing restrictions on the issuance of a commercial banking license, regulators said the buyer of EIB’s license might find significant benefit in acquiring it.
Officials claimed that the buyer of EIB’s branches and other assets could also enjoy significant benefits because the bank has 50 branches nationwide with a substantial depositor base. Those expected to participate in the bidding for EIB’s branches and assets are commercial banks planning to expand.
The buyer of EIB’s assets will assume the bank’s liabilities.
PDIC said there was significant interest in EIB among existing players in the banking sector. Several commercial banks have submitted applications to participate in the bidding for EIB’s assets on October 18, it said.
“Interested parties (those participating in the bidding for the bank’s assets) have been prequalified based on their financial and management capability. Prequalified (bidders) have completed due-diligence audit on EIB and are now making preparations for the bidding,” PDIC said in a statement.
The prequalified bidders have been told to submit their proposed rehabilitation plans before the bidding on October 18. PDIC said the rehabilitation plans must provide details on capital strengthening, liquidity, sustainability and governance of the bank.
Originally posted at 09:46 pm | Tuesday, September 18, 2012