MANILA, Philippines - The Monetary Board, the policy-making body of the Bangko Sentral ng Pilipinas (BSP), has approved the merger between China Bank Savings Inc. (CBS) the thrift bank subsidiary of China Bank, and Pampanga-based rural lender Unity Bank.
With the BSP approval, the merger would be implemented within six months.
Exactly a year ago, China Bank acquired 99.95 percent of Unity Bank’s outstanding subscribed capital stock.
The acquisition boosts CBS’ 51 branches by 39 branches – 15 existing Unity Bank branches and 24 branch licenses in the restricted areas granted by the BSP.
China Bank’s purchase of Unity Bank supports the BSP’s SPRB Plus, a program that aims to effectively serve the countryside and improve the delivery of financial services to rural communities by strengthening the thrift and rural banking industry.
The BSP nod is one of three regulatory approvals needed to effect the merger. The Philippine Deposit Insurance Corp. has earlier given its approval while CBS is still awaiting the consensus of the Securities and Exchange Commission.
With the merger, CBS is on track to meet its target of 73 branches by year-end and 100 by next year.
Focused on the retail market, CBS offers banking products and services that match different life stages and its “madaling kausap†brand of personalized service through traditional branches in strategic locations and full service mini branches in retail outlets.
CBS launched the mini branch concept in July this year as part of its strategy to expand more efficiently. It now has nine mini branches in Savemore stores which are open daily, from 10 a.m. to 7 p.m., and plans to add three more in Savemore and SM Hypermarket outlets within the year. CBS is looking at a 40-strong mini branch network by 2014.