Rural banks given 2 years to pursue merger plans
The government has revived incentives for small banks to consolidate.
The Philippine Deposit Insurance Corp. (PDIC) gave a second chance for rural banks to volt in under the Consolidation Program for Rural Banks (CPRB).
The first wave of the program expired in August, but the PDIC and other government agencies decided to relaunch the CPRB for another two-year period which expires on Oct. 26, 2019.
Under the program, rural banks in one area can decide to merge their assets and operations into a new surviving bank. The PDIC and the Land Bank of the Philippines will extend technical and financing aid to make the consolidation happen, which will result in stronger and bigger banks.