A bank that was once owned by the BSP is being sold off, as a major shareholder, for a new company with a stake in an international financial institution.
A BSP-owned bank is being bought by an entity that owns a major shareholding in the company that manages it, the Philippine Commercial Bank, or PCCB, reported the Philippine Star on Thursday.
The PCCA’s bank portfolio included a major stake in the national currency, the peso, as well as a significant shareholding from the Philippine Bank for International Cooperation.
The PBCB owns a substantial stake in PCCP Bank, which was a subsidiary of PCCS Group.
PCCP is a leading Philippine private bank that serves the country’s small and medium-sized enterprises and its clients, particularly exporters.
Its portfolio includes a majority stake in a company that handles money transfers to Chinese banks and has operations in China, Indonesia, and Malaysia.
“PCCB will become independent as of next year,” said the bank’s chief executive, Christopher Kudungano, in a statement on Thursday, adding that it will continue to be managed by a group of independent directors, including PCCD, a former member of the Bishops’ Conference of the Philippines.
Kudungans company, the bank, is owned by its chairman, the countrys largest shareholder, the PCCM, a billionaire real estate developer, who also has a stake as a director of the PBC.
The BSP, however, owns a significant stake in other companies that are part of PCCC, including a stake owned by an unnamed bank that manages the PCCC’s international investment arm.
The Philippines’ biggest bank has been in the news for years.
In August 2016, a BSP subsidiary that had been involved in the banks financial dealings was suspended by the Philippines government, for allegedly defrauding the government.
It later filed a lawsuit against the bank for alleged violations of the Bank Secrecy Act, which makes it illegal for private banks to hide their transactions.
Kuduns bank is not the only one to have faced regulatory scrutiny.
In January 2017, the BIS of Singapore, the world’s largest bank, revoked the BSC’s BSPs bank license, citing a lack of compliance with the countrysbankingcode.