MANILA -- The merger of Pasig City-based Producers Savings Bank Corporation with seven rural banks (RBs) has been approved by the Securities and Exchange Commission (SEC).
Bangko Sentral ng Pilipinas (BSP) Deputy Governor Chuchi Fonacier, in Circular Letter 2019-044 issued on June 21, 2019 said merger of the Producers Savings Bank, a thrift bank with over 167 branches nationwide, with the seven RBs took effect on June 1, 2019.
She said SEC approved the Plan and Articles of Merger, which was executed last last May 31.
The RBs absorbed by Producers are the Rural Bank of Pamplona (Camarines Sur) Inc. (PLNCS), Rural Bank of President Quirino (Sultan Kudarat), Inc. (PRQUI); Bangko Rural ng Pasacao (Camarines Sur), Inc. (BRPI); Bangko Rural ng Magarao (Camarines Sur), Inc. (BRMAG); Rural Bank of San Fernando (Camarines Sur), Inc.; (SFCS); Rural Bank of Barotac Nuevo, Inc. (BNUEV); and Rural Bank of Sibalom (Antique) Inc. (SBLOM).
The BSP has been calling for the merger and acquisitions (M&As) of banks in the country to ensure that the industry remains strong.
It has put in place several programs encouraging M&As such as the Strengthening Program for Rural Banks (SPRB) and its enhanced version, SPRB Plus, and the Consolidation Program for Rural Banks (CPRB).
SPRB was implemented from 2010 until 2013, SPRB Plus ended on December 31, 2014, while CPRB was implemented from 2015 until 2017. (PNA)
