PDIC nixes P3.5-B aid to Veterans Bank

The Philippine Deposit Insurance Corp. (PDIC) has decided against extending a P3.5-billion financial assistance package to Philippine Veterans Bank (PVB).

"They wrote us but we said we cannot under the terms and conditions they specified," PDIC acting president Michael R. Osmena said in an interview. He, however, refused to elaborate on the bank’s terms and conditions. 

The STAR tried to get in touch with PVB president and CEO Ricardo A. Balbido Jr. but he was unavailable for comment. 

Since the PDIC nixed the deal, the bank then sought assistance from the Bangko Sentral ng Pilipinas (BSP). "Now it all depends on the Monetary Board. Normally, all of these financial assistance are reviewed both by the PDIC and the BSP but it has to be approved by the Monetary Board," Osmeña explained.

Osmeña said the regulators are still evaluating the request.

PVB sought financial assistance last year from the PDIC after it served as a white knight to an ailing thrift bank. When asked about the bank’s financial position, Osmeña said the bank is doing "okay". "Normally the request is over a long period of time," he noted.

Early this year, reports stated that PNB needs central bank intervention in order to prevent a "systemic crisis" as the bank made moves to absorb thrift bank Bankwise.

Bankwise has had financial problems and sought special permission from the BSP not to publish a statement of condition.

In a previous interview, Balbido said they are interested in Bankwise because of its P1.5 billion private deposit. "It is a good source of funds," he said.

At present, 70 percent of PVB’s deposits are comprised of government deposits.

Balbido said the acquisition of Bankwise will improve the government-private deposits ratio to 60-40.

Aside from the deposit base, Balbido said PVB is also interested in the six branches of Bankwise — four in Metro Manila, one in Cebu and one in Davao.