July 19, 2016

The Philippine Deposit Insurance Corporation (PDIC), Receiver of the closed GSIS Family Bank, called on interested investors to participate in the pre-qualification process for the rehabilitation of the bank. Interested parties have until July 20, 2016 to submit their letters of intent to rehabilitate the bank and the required supporting documents.

Investors may be banks or non-bank corporations. Meanwhile, supporting documents include full name, address, and contact details; business overview; list of shareholders and their respective shareholdings and nationalities; evidence of financial capacity. In case the investor is a consortium, all the supporting documents for each member of the consortium are required to be submitted.

As earlier published, documentary requirements should be submitted on July 20, 2016 to Ms. Ana Rosa E. Viray, Department Manager of PDIC's Receivership and Bank Management Department I located at the 5th Floor, SSS Building, Ayala Avenue corner V.A. Rufino St., Makati City.

Investors will be evaluated based on a set of pre-qualification criteria. Banks that intend to participate in the rehabilitation of the GSIS Family Bank shall be required to have a minimum capital adequacy ratio (CAR) of 12% before the acquisition, the capacity to infuse necessary capital to ensure that the 12% CAR requirement is complied with if it falls below 12% after acquiring GSIS Family Bank, and a CAMELS composite rating of at least "3" with a Management rating of not lower than "3". Interested investor-banks must have no findings of unsafe and unsound banking practices and are not under the Prompt Corrective Action (PCA) framework of the Bangko Sentral ng Pilipinas (BSP). In case of foreign banks, these 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. In addition, they should have capital of at least PHP2 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.

In the Invitation to Prequalify as earlier published and as posted in its website, PDIC advised that after the pre-qualification process, investors which met the pre-qualification criteria shall be notified of their eligibility to further participate in the rehabilitation of GSIS Family Bank. It also enjoined interested investors to ensure that all supporting documents are duly certified/signed by their authorized representative. PDIC said that it shall not consider any document that is not certified/signed. PDIC reserves the right to terminate the rehabilitation process at any time.

Qualified third party investors shall be required to execute a confidentiality agreement and post a PHP5 million bond prior to the conduct of the due diligence on August 1, 2016.

Letters of Intent submitted after the July 20, 2016 deadline shall no longer be entertained.

Interested investors may visit www.pdic.gov.ph for further information or communicate with Ms. Viray at (02) 841-4751 or at e-mail address, aeviray@pdic.gov.ph.

A 22-unit thrift bank, GSIS Family Bank was ordered closed by the Monetary Board of the BSP and taken over by PDIC on May 13, 2016.

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The Philippine Deposit Insurance Corporation (PDIC) was established on June 22, 1963 by Republic Act 3591 to provide depositor protection and help maintain stability in the financial system by providing deposit insurance. Effective June 1, 2009, the maximum deposit insurance coverage is P500,000 per depositor. All deposit accounts by a depositor in a closed bank maintained in the same right and capacity shall be added together. A joint account shall be insured separately from any individually-owned deposit account.

PDIC news/press releases and other information are available at the website, www.pdic.gov.ph.