Vol. XXII, No. 146 [ BusinessWorld Online ]
Wednesday, February 25, 2009 | MANILA, PHILIPPINES
RIZAL COMMERCIAL Banking Corp. (RCBC) is set to enter into a joint venture with sister firms in the Yuchengco Group of Companies to develop a foreclosed property in Taguig.
In a disclosure, the bank said the property project would be carried out with RCBC Savings Bank, Malayan Insurance Co. Inc., Bankard, Inc., and the Great Pacific Life Assurance Corp.
The joint venture will develop RCBC Savings Bank’s idle property at the Bonifacio Global City.
The central bank allows banks to create joint ventures to earn profits out of foreclosed properties and other assets acquired in following a merger.
But under the scheme, banks are not allowed to infuse funds into development projects.
The ruling complemented Republic Act No. 9182 or the Special Purpose Vehicle Law of 2002 which helped banks trim their bad loans following the 1997 Asian financial crisis. Despite the law’s expiry, the central bank still allows such ventures.
RCBC’s joint venture with the other Yuchengco-led firms is still subject to the approval of the Monetary Board.
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