PDIC OKs consolidation

The Philippine Deposit Insurance Co. (PDIC), through its Resolution No. 2003-07-0111 has granted consent to the proposed consolidation of three of Mindanao’s largest rural banks, Network Rural Bank Inc. (NRB), Rural Bank of Panabo Inc. (RBP), and Provident Rural Bank Inc. (PRB), pending approval of the Bangko Sentral ng Pilipinas (BSP). The new consolidated bank will be called the One Network Rural Bank Inc.

The proposed consolidation will combine the strengths and resources of the NRB, RBP and PRB to better serve the rural townfolk and SME’s of Mindanao.

The consolidation will also take advantage of certain incentives the BSP offers to consolidating middle and small sized banks.

These incentives include branching, servicing FCDU or US$ deposit accounts and participation in direct clearing operations of PCHC/BSP.

Due to these factors and the marked stability of the consolidating banksand rural banking in general, the proposed One Network Bank will be able to offer the financial strength of a larger institution with the service flexibility rural banks provide.