The BSP set the condition last week when it took up UOB-Philippines’ request for clearance to allow UOB-Singapore to acquire up to 90 percent of the bank.
The Monetary Board, BSP’s policy-making body, approved the acquisition in principle but UOB has not complied with two major requirements for the final approval of the transaction.
A source told reporters over the weekend that UOB was required to submit a certification to the effect that the BSP would be held free from any suit in connection with the transaction.
More importantly, however, the source said UOB Philippines would have to restore its capital base to hurdle the minimum capital requirement of P2.4 billion.
"Since they have not complied, the processing of the final approval of the transaction was not pursued," the source said.
Once the bank complied with these last two hurdles, the source said the MB would take up the application again. Once the final approval is handed down, only then could UOB of Singapore proceed with its acquisition of up to 90 percent of UOB Philippines.
The BSP clarified last week that it only approved the acquisition in principle and only up to 90 percent of UOB Philippines pending the resolution of the ownership dispute over the remaining 10 percent of the bank's shares.