PH banks seen divesting non-core assets

Philippine banks, particularly those that belong to local conglomerates, and those with minority stakes in various entities are seen to be more active in divesting and monetizing value from their non-core assets ahead of the imminent implementation of Basel III requirements in 2014.

This statement came from credit-ratings agency Moody’s Investors Service after Rizal Commercial Banking Corp. (RCBC) announcement that it had concluded share purchase agreements to sell its 25-percent equity stake in RCBC Realty Corp. (RRC) and its 49-percent equity stake in RCBC Land Inc. (RLI) for a total consideration of P4.5 billion, or $103.9 million.