According to its new treasurer Ramon Arceo, UCPB will ask the BSP for clearance to accept government deposits now that it is under the control of the Presidential Commission on Good Government (PCGG).
In an amicable settlement reached last Friday, the PCGG and the Cojuangco group agreed that the former would nominate the new 15-man board of UCPB.
Named as chairman and president was Edward S. Go, replacing Geronimo Kilayco, while Arceo replaced Juan J. Carlos as treasurer.
At present only the Land Bank of the Philippines and the Development Bank of the Philippines are the government’s depository banks.
Being authorized as a government depository bank will be a big boost to UCPB especially since it is saddled with a substantial amount of non-performing loans (NPLs).
At the same time, PCGG Commissioner Haydee Yorac indicated that the government may infuse additional funds into UCPB "if it becomes absolutely necessary."
Go and Arceo said their first priority is to review the current portfolio of the bank and ensure that its assets are maintained. They would also address the issue of recapitalization as ordered by BSP Governor Rafael B. Buenaventura.
The BSP has ordered all local banks to increase their capital in order to be able to compete in the global financial market. In fact, the BSP has been urging local banks to merge and consolidate. – Marianne Go