PBCom prepares for Tier 1 capital infusion

After running into controversy last year, PBCom is expected to come up with a rehabilitation plan this January as the bank prepares for a Tier 1 capital infusion to raise its capital adequacy ratio.

According to the Bangko Sentral ng Pilipinas (BSP), PBCom is getting its rehabilitation plan ready before applying for Monetary Board approval for its Tier 1 offer.

BSP Governor Rafael Buenaventura said the Tier 1 offer would hopefully improve PBCom’s capital adequacy ratio (CAR).

"Right now, PBCom is below CAR which, if not addressed, would affect the bank’s profitability," Buenaventura said. "But they’re undertaking this infusion and they’re coming up with a rehabilitation plan. We’re optimistic."

Buenaventura ruled out the possibility that taipan Lucio Tan would buy into PBCom and added that the bank’s existing stockholders are infusing as much as P3 billion into the bank.

Tan and businessman Robin Sy have put in at least P1-billion worth of assistance to PBCom, effectively taking the bank out of the woods after it was hit by rumors that triggered withdrawals by depositors.

Buenaventura said Tan and Sy’s assistance would help provide the stability to PBCom even as rumors continue to circulate that the bank is still in the midst of a bankrun.

"I find it rather unfortunate that rumors were being spread around about PBCom," Buenaventura said, visibly irritated by the incident. "It doesn’t benefit anyone, it does nothing but harm to the entire banking sector."

Last month, Tan announced that he had deposited P1 billion into the beleaguered bank in an effort to show support and stave-off a possible bank-run that could lead to the collapse of the country’s 16th largest bank.

In a statement, Tan announced that his bank, Allied Bank, was also willing to encash all PBCom checks as a show of support for the bank which is partly owned by Enrique Luy.