Requirements for Rehabilitation of Closed Banks | |
PARTIES INTERESTED TO REHABILITATE A CLOSED BANK NEED TO COMPLY WITH THE FOLLOWING REQUIREMENTS:
- Submit Letter of Interest:
Letter manifesting interest to rehabilitate a bank shall be submitted within ten (10) calendar days from date of publication of notice or posting at the bank premises of notice of closure of the bank together with the pre-qualification requirements as follows:
full name of the interested party, address, telephone & telefax numbers, and email address of principal contact;
business overview of the interested party;
if interested party is a corporation, list of shareholders and their respective shareholdings and nationalities; in the case of corporate shareholders, the principal shareholders thereof and their respective nationalities; and
evidence of financial capacity to pursue the bid (e.g. audited financial statements or equivalent)
All documents must be duly certified/signed by the interested party or its/his duly authorized representative.
Conduct of Due Diligence Audit and Submission of Rehabilitation Plan
Proponents for the rehabilitation of a closed bank shall be notified of their pre-qualification within five (5) calendar days from receipt by PDIC of the pre-qualification requirements. Subject to execution of a confidentiality agreement, proponents shall be given authority to conduct due diligence on the bank and submit a rehabilitation plan within forty-five (45) calendar days reckoned from the date of notice of prequalification.
Requirements for rehabilitation:
Rehabilitation/Business Plan showing compliance with the four (4) parameters for the rehabilitation of a closed bank (capital strengthening, liquidity, sustainability and viability, and governance).
Proponents shall present their business plan with proposed members of the Board and key officers in attendance.
Consent of stockholders representing 2/3 of outstanding capital stock
Submission of a Bond at a minimum flat rate of P5Mn in the form of a Manager's Check payable to PDIC FAO (closed bank), prior to commencement of due diligence
Qualifications of proponents:
Track record of financial and management capability as substantiated by such documents as Income Tax Return (ITR), resume and documents from SEC (if proponent is a Corporation with at least 3 years track record)
No findings of unsafe and unsound banking practices (if proponent is a bank or stockholder or officer of any bank).