AllBank will absorb the assets and liabilities of Rural Bank of Plaridel.
The Philippine central bank has approved the merger between thrift bank AllBank and the Rural Bank of Plaridel in a move that marks heightened consolidation in the country’s banking industry, reports The Philippine Star.
In its Circular 2019-013, the central bank announced 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.
With assets worth $52m (PHP2.71b), AllBank has 13 branches and 25 ATMs nationwide. It is owned by the family of former Philippine senate president Manuel Villar.
The Philippine government is encouraging for mergers and consolidations amongst small banks specifically rural banks. Incentives are provided for under under the Consolidation Program for Rural Banks (CPRB).
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