MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has approved the merger of the Villar-led AllBank (A Thrift Bank) Inc. and Bulacan-based Rural Bank of Plaridel Inc. as part of the continued consolidation in the banking industry.
The BSP issued Circular 2019-013 announcing the approval by the Securities and Exchange Commission (SEC) of the articles and plan of merger, whereby AllBank will absorb the entire assets and liabilities of the Rural Bank of Plaridel.
AllBank is the country’s 25th largest thrift bank in terms of assets with P2.71 billion. It is owned by the family of former Senate president Manuel Villar and his wife Sen. Cynthia Villar.
The bank currently has 13 branches and 25 ATMs nationwide.
Last December, the central bank also approved the merger between Marayo Bank and Rural Bank of Oton.
Marayo will absorb all the assets and liabilities of Rural Bank of Oton and will be the surviving corporation.
Last year, the BSP ordered the closure of 12 problematic banks as it continued to rid the industry of weak players.
These include Quezon City-based San Francisco del Monte Rural Bank Inc., Pangasinan-based Malasiqui Progressive Savings and Loan Bank, Rural Bank of Luna (Apayao), Rural Bank of Pagbilao, Rural Bank of Sta. Elena (Camarines Norte), Batangas-based Tiaong Rural Bank, Iloilo-based Bangko Buena Consolidated, Batangas-based Women’s Rural Bank, Rural Bank of Initao (Misamis Oriental), Empire Rural Bank in Lipa City, Batangas, Rural Bank of Loreto (Surigao del Norte), and Rural Bank of Maigo (Lanao del Norte).
The number of banks closed down by the BSP last year exceeded the seven shut down in 2017.
The government currently provides incentives under the Consolidation Program for Rural Banks (CPRB) to encourage mergers and consolidations among small banks particularly rural banks to further strengthen and enhance the viability of the banking system.
The CPRB aims to improve financial strength, enhance viability and generate better returns to shareholders, strengthen management and governance, generate synergies and economies of scale through common infrastructure, systems and resources as well as expand the market reach of rural banks.