MALAYSIA BAILS OUT ANOTHER COMMERCIAL BANK

  Malaysia's central bank said it
  acquired a 59.2 pct stake in ailing &lt;United Asian Bank Bhd>
  (UAB), the sixth largest commercial bank in the country, to
  rebuild public confidence in it.
      UAB called for a rights issue last November to raise 152.49
  mln ringgit to rectify its capital deficiency following an
  accumulated loss of 107.61 mln ringgit at end-1985, the central
  bank, Bank Negara, said in a statement.
      But only 16.99 mln ringgit in shares was taken up by
  shareholders, mainly local Indian and Malay businessmen and the
  Indian Government.
      Bank Negara said it subsequently took up the unsubscribed
  shares, totalling 135.5 mln of UAB's new paid-up capital of
  228.74 mln ringgit.
      It said the shares, held in trust, will be eventually sold.
      The central bank early this week also announced that it had
  bought 49.4 pct stake in another troubled commercial bank,
  &lt;Perwira Habib Bank Malaysia Bhd>, after the latter raised its
  capital to 405 mln ringgit from 105 in mid-January this year.
      Bank Negara said it does not intend to hold on to the
  shares of the two banks.
      "The injection of capital in PHB and in UAB including the
  recamp of management in these banks are some of the measures
  taken by the bank to strengthen public confidence in the
  stability of the these banks," it added.
      The central bank said it is invoking Section 39A of the
  Banking (Amendemnt) Act 1986 empowering it to grant loans to an
  ailing bank or to buy a stake in it.
  

