Urban Bank to turn into a holding firm

Urban Banking Corp. will convert its operations into a holding company together with its three major investment companies as part of its effort to be competitive in the financial services market, Bangko Sentral ng Pilipinas (BSP) Gov. Rafael B. Buenaventura said yesterday.

Buenaventura said he is endorsing Urban Bank's plans to convert into a holding company along with its three major investment arms: its wholly-owned subsidiary thrift bank, Urbancorp Development Bank (UDB); its communication and technology firm and its investment house.

UDB, has no recorded non-performing loans in its loan portfolio and plans to increase its capital to P2 billion.

The realty development company of the Urban Group, Urban Realty Development Corp. would be converted into a technology firm.

"The bank holding company concept is now allowed in the newly passed General Banking Act but subject to rules and guidelines to be established by the Monetary Board," the BSP chief said.

The IT company, he said, would address the rapid changes and market demands for E-commerce and would provide the Urban Bank group a leading edge in information and communication technology.

"Urban Bank's credentials in this field consist of its ISO 9001 certification for its virtual banking development and its recognition as the first internet bank since 1996," he said.

The strengthening of UDC, on the other hand, is seen to position the bank in the forefront of mortgage banking and securitization and serve as a primary catalyst for growth and dynamism in the housing industry.

He said housing is one of the centerpiece projects of the Estrada administration.