Yuchengcos merge thrift bank with RCBC to cut costs
Is there trouble in paradise?
The bilyonaryo Yuchengco clan sent shockwaves at the Philippine Stock Exchange on Tuesday morning.
They announced via a disclosure on Sept. 25 that the board of directors of the RCBC Savings Bank will be absorbed by its parent firm, the Rizal Commercial Banking Corp. (RCBC).
RCBC, a commercial bank, wholly owns the thrift bank but will now be merging as one firm.
RCBC said the merge will allow “more efficient capital deployment, more efficient compliance with the Basel 3 liquidity ratios, optimal coordination between the branch banking networks of RCBC and RCBC Savings, medium-term improvement in the funding economics, and operational cost efficiencies.”
Rising operating costs and interest rates may have made them decide to rationalize operations.