MB-The Monetary Board of the Bangko Sentral ng Pilipinas (BSP) has approved Banco de Oro Unibank’s request to start accepting deposits from the Government Service Insurance System (GSIS).
It has not been disclosed how much of GSIS’s estimated P20 billion cash deposits, bulk of which is currently with Union Bank of the Philippines, will be transferred to BDO.
Sources have confirmed that BDO’s request for authority to accept government deposits from GSIS has been approved by the BSP last week.
BDO, a private commercial bank owned by the Sys and the country’s largest in asset size, will have to be accredited as an official government depository bank, the same sources noted. The bank has over 700 branches and 1,300 ATMs.
BDO joins United Coconut PlantersBank and Philippine National Bank as private banks also authorized to accept government cash. State-controlled Land Bank of the Philippines and Development Bank of the Philippines are official government depository banks.
In fact Land Bank used to be GSIS’s main depository bank. But in 2004, the pension fund closed its accounts with the GFI and transferred all its funds to the Aboitiz-owned Union Bank, which it claimed was the successful bidder for the GSIS eCARD. GSIS still has a maintaining balance of about P5 billion with Land Bank.
In 2004, GSIS had P16 billion in deposits with Land Bank. Besides the bank, GSIS releases pensions through DBP. The Aboitiz family, which controls Union Bank, is a Cebu-based clan running one of the country’s conglomerates.
GSIS has 1.5 million members and pensioners. In 2008, it registered an income growth of 30.39 percent to P46.42 billion from loans and investments.
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