BSP Oks merger of two small banks

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has given Aboitiz-led Union Bank of the Philippines the final greenlight to merge City Savings Bank and Isabela-based Philippine Resources Savings Bank.

Union Bank of the Philippines said in a disclosure the BSP, through a letter dated Dec. 27, informed the bank about the regulator’s formal approval of the merger of the two banks, with City Savings Bank as the surviving entity.

Last June 19, the central bank’s Monetary Board approved the equity investment of City Savings Bank in PR Savings Bank through the acquisition of 100 percent of the issued and outstanding common shares of stock in PR Savings Bank.

The BSP also gave the approval-in-principle of the merger between City Savings Bank and PR Savings Bank. PR Savings Bank is 100 percent owned by UnionBank’s wholly-owned subsidiary City Savings Bank.