BLOGGED PHILIPPINES

News broke out today confirming rumors that Ayala-led Bank of the Philippine Islands (BPI) and Lucio Tan's Philippine National Bank (PNB) is in talks of merger/acquisition to become the country's largest financial entity usurping Sy-led Banco de Oro Unibank (BDO) in terms of assets. The confirmation was made through independent disclosures to the Philippine Stock Exchange(PSE) early Wednesday morning. BPI disclosure says: " We confirm discussions with the Lucio Tan Group and will make the appropriate disclosures in accordance with the PSE disclosure rules. In the meantime, we request suspension of trading on BPI shares today ." On the other hand, PNB disclosure says: " In reply, we confirm that there have been discussions between the Lucio  Tan Group and the Ayala Group. We will make the appropriate disclosures  within the day once we obtain the necessary board approvals. The formal disclosure will be sent to the regulators in acco...

What is a universal bank or unibank? Well, universal banks are licensed to do many kinds banking activities covering both the activities of a commercial bank (loans, time deposits, savings) and an investment bank (underwriting, issuance of securities, assisting companies in mergers and acquisitions). In the Philippines, the Bangko Sentral  or the Central Bank has the sole right to issue licences to banks who wanted to operate as a unibank. As of August 1, 2012, the Philippines has 21 Universal Banks. Here' the list of them. 1. Banco de Oro Unibank, Inc. 2. Bank of the Philippine Islands 3. Metropolitan Bank & Trust Company 4. Land Bank of the Philippines 5. Philippine National Bank 6. Allied Banking Corporation 7. China Banking Corporation 8. Rizal Commercial Banking Corporation 9. Union Bank of the Philippines 10. United Coconut Planters Bank 11. Security Bank Corporation 12. Development Bank of the Philippines 13....