China Bank Savings, Pampanga rural bank merger gets green light

Shareholders of China Bank Savings (CBS), a unit of China Banking Corp., approved the merger with a Pampanga-based rural bank, targeting 100 branches next year.

In a disclosure to the Philippine Stock Exchange, China Bank said stockholders of CBS approved the merger with Unity Bank during the savings bank's annual stockholders meeting July 18.

Bangko Sentral ng Pilipinas (BSP) and Securities and Exchange Commission will have to approve the merger.

In a statement, CBS president Alberto Emilio V. Ramos said the merger fast-tracks the savings bank’s branch expansion program. “From this deal alone, we will have at least 73 branches by year-end, on track to meet the target of 100 branches by 2014,” Ramos noted.

Once approved, Unity Bank will be folded under CBS and its branches converted into CBS’ core banking system and carry the name China Bank Savings.

In November 2012, BSP approved China Bank’s acquisition of 99.95 percent of Unity Bank’s outstanding subscribed capital stock for P400 million.

With the approval, Bangko Sentral's policy-making Monetary Board waived the license fees for 18 more branches to be opened in restricted areas, and six more once the merger is completed.

CBS opened nine branches in the first half of the year, bringing its branch count to date to 42 from 33 last year.

The acquisition supports Bangko Sentral's Strengthening Program for Rural Banks to improve the delivery of financial services by strengthening the thrift and rural banking industry which cater mainly to people in the countryside. — Danessa Rivera/VS, GMA News

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • Island Hopping in Honda Bay Gael Hilotin - Pinay Solo Backpacker
    Island Hopping in Honda Bay

    Puerto Princesa has long been a magnet of sun-worshippers and pleasure seekers. Gratefully, despite the crowd it brings, it has managed to preserve its splendor over the years. Resting on the eastern coast of the green city is Honday Bay, … Continue reading → …

  • Rising number of trafficked fishermen alarms Tawi-Tawi authorities VERA Files - The Inbox
    Rising number of trafficked fishermen alarms Tawi-Tawi authorities

    By Jake Soriano, VERA Files Bongao, Tawi-Tawi—Tawi-Tawi authorities are alarmed at the growing number of fishermen from the Visayas who end up here after being recruited by human trafficking syndicates to engage in dangerous compressor diving. The latest case involves … Continue reading → …

  • The return of Gigi Reyes Ellen Tordesillas, Contributor - The Inbox
    The return of Gigi Reyes

    By Ellen T.Tordesillas This is going to be fascinating. Atty. Gigi Reyes, former chief of staff of Sen. Juan Ponce-Enrile who is included among those accused of plunder in connection with the misuse of Priority Development Assistance Fund, came back … Continue reading → …

POLL
Loading...
Poll Choice Options