BSP approves merger of 2 banks

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) approved the merger of Marayo Bank Inc. (MRYNO) and Rural Bank of Oton (lloilo) Inc. as part of the continued consolidation in the banking industry.

BSP Deputy Governor Chuchi Fonacier issued Circular Letter No. 2018 -079 announcing the effectivity of the merger last Dec. 7.

The Securities and Exchange Commission approved the Articles and Plan of Merger executed between Marayo Bank and Rural Bank of Oton last Dec. 6.

Marayo Bank would absorb all the assets and liabilities of the Rural Bank of Oton. Marayo Bank would be the surviving corporation.

The BSP has ordered the closure of 12 problematic banks this year as it continues 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 regulator so far this year has exceeded last year’s seven closures as it continues to heighten its campaign against weak banks.

BSP Governor Nestor Espenilla Jr. had said the regulator would not hesitate to close down banks to protect the public.