Yangon [Myanmar]/Tokyo [Japan], Dec.2 : Co-Operative Bank (CB Bank), a major commercial bank in Myanmar, Myanmar Payment Union Public Co. Ltd (MPU), and JCB International Co. Ltd. (JCBI), the international operations subsidiary of JCB Co., Ltd., have announced that CB Bank will start issuing JCB debit cards in December 2016.
The CB MPU-JCB Co-Brand Card combines the MPU brand and JCB brand. Card members can use MPU's nation-wide merchant network in Myanmar and JCB's international merchant network with over 31 million locations globally.
The troubled CO-OP Bank has said that it needs more time to release its financial details as the bank evaluates the details of it's the gap in its capital.
The new head of the bank, Niall Booker had earlier said that the results will be announced 8 April but the results were further delayed to 11 April, 2014. The Co-op Bank revealed a £400 million gap in its capital position. The gap was additional to the £1.5billion gap identified in the previous year.
Clive Adamson, who had led a panel to approve the appointment of Paul Flowers as chairman of the beleaguered Co-operative Bank, has said that the appointment was not a mistake and he was the right choice for the bank. Mr Adamson, was working as a senior regulator at the Financial Services Authority had appointed the Rev Flowers as the head of the troubled bank.
Co-op Bank has been able to cross a major obstacle in its efforts to fill a finance gap after it received an approval from its bondholders for its recapitalisation plan.
Euan Sutherland, the group chief executive, has said that the new rescue plan for the bank will allow it to meet its obligations.
He said that the plan will allow the bank to raise necessary capital and help in protecting its ethics and values for the long term. He pointed out that the plan would remain only a plan if it is not backed by thousands of investors who hold preference shares and bonds in the bank. He said that the support from the investors is the key factor in ensuring the survival of the group.
Four non-executives of co-operative Bank have resigned from the board of the bank as it looks to plug the £1.5 billion hole in its finances.
Following the resignation, the number of directors or senior executives has fallen to nine since the financial troubles of the bank began five months earlier. Len Wardle, group chairman, Duncan Bowdler, a buying manager for the Co-operative Group, as well as external non-executives Bob Newton and Peter Harvey have left the bank.
Bondholders of the co-operative bank have asked the regulator to revaluate the £1.5 billion rescue package for the bank.
Under the plans, the bondholders will be given new bonds for their existing debt and a gap of £1.5 billion will be filled in the equity. According to estimates, the bondholders would lose about £500 million but the finalised proposal is yet to be published by the bank. Bondholders have been critical of the regulator for adopting a punitive approach to addressing the bank's problems.
Co-operative Bank PLC, which is a part of the Co-operative Group Ltd, has said that it will raise fresh capital this year by offering holders of its £1.3 billion in subordinated bonds a mix of new senior debt and shares.
It is believed that hundreds of pensioners and other small investors in the Co-operative Bank in the UK are likely to lose losing millions of pounds under the new rescue plan for the financial institution.