RP central bank readies rescue package for banks
08/16/2009 | 07:15 PM
The Bangko Sentral ng Pilipinas (BSP) is in talks with state-run Philippine Deposit Insurer Corp. (PDIC) for rescue package for troubled banks, deputy governor Nestor Expenilla said.
The lifeline will also be available to merging banks and those looking for white knights.
“The main thrust is to provide targeted additional financial incentives. The surviving entity has to be a strong bank to qualify," Espenilla said.
The BSP has available incentives to mergers and consolidation such as temporary relief from full compliance with the prescribed net worth to risk assets ratio, five-year automatic extension for retirement of government preferred shares among others.
“We’re still discussing features with the PDIC; it’s a bit premature to talk about specifics," he said.
In a bid to strengthen the banking system’s resource and capital base, the central bank has been pushing for consolidation especially for banks encountering difficulties in meeting capital build-up requirements. -GMANews.TV
The lifeline will also be available to merging banks and those looking for white knights.
“The main thrust is to provide targeted additional financial incentives. The surviving entity has to be a strong bank to qualify," Espenilla said.
The BSP has available incentives to mergers and consolidation such as temporary relief from full compliance with the prescribed net worth to risk assets ratio, five-year automatic extension for retirement of government preferred shares among others.
“We’re still discussing features with the PDIC; it’s a bit premature to talk about specifics," he said.
In a bid to strengthen the banking system’s resource and capital base, the central bank has been pushing for consolidation especially for banks encountering difficulties in meeting capital build-up requirements. -GMANews.TV
