Manila Bank gets okay to acquire Malaysian bank

The Monetary Board, the policy-making body of the Bangko Sentral ng Pilipinas (BSP), has approved the sale of a majority stake of Malaysian-owned TA Bank of Manila Banking Corp.

TA Bank is 60 percent owned by a Malaysian group which reportedly decided to divest their shares in the bank due to financial difficulties.

BSP Deputy Gov. Alberto Reyes said the finalization of the agreement would allow Manila Bank to assume the commercial bank license of TA Bank.

Reyes said Manila Bank will start operating as a commercial bank upon the first tranche of payment of the latter to TA Bank this week. "Manila Bank may now enjoy the privileges of a commercial bank like issuing letters of credit and foreign exchange transactions."

According to Reyes, Manila Bank is still actively looking for other thrift banks to acquire after their failed negotiations with Prime Savings Bank (PSB).

Manila bank backed out from buying PSB when the latter's depositors did not agree for the restructuring of their loans after more than seven months of negotiations. Had the deal with PSB succeeded, Manila Bank would have acquired PSB's 61 branches all over the country.

The BSP official said Manila Bank would continue to be aggressive in looking for expanding its network. "They (Manila Bank) need more branches for expansion purposes," he said.

Manila Bank, majority owned by the Puyat family, reopened mid-last year as a thrift bank after 12 years of being closed. It has total assets of P4.5 billion, of which P1.5 billion are liquid assets. About P2 billion represents foreclosed real estate assets while the remaining P1 billion is in the form of bank premises, two building and 16 branches.

Shortly after reopening, Manila Bank acquired Omni Savings Bank, owned by Cebu-based businessmen. Reyes, though, said Manila Bank has yet to inform the Monetary Board of the identities of the small banks it is considering buying.