Money

Consing: COVID crash could lead to bank mergers just like in Asian financial crisis

Bank of the Philippine Islands president Cezar Consing won’t be surprised if the once-in-lifetime coronavirus catastrophe will lead to a series of consolidation in the banking industry.

“You get a crisis like this, consolidation is a possibility,” said Consing in an interview with ANC.

The president of the Bankers Association of the Philippines made the statement amid rumors that bilyonaryo Frederick Dy’s Security Bank was keen on gobbling up EastWest Bank of the Gotianun family.

The 1997 Asian financial crisis, which led to a steep devaluation in the regions currencies and damaged confidence in the financial system, prompted the biggest mergers and acquisitions in local banking history.

“Major consolidations in that period helped shape the industry today. Equitable Bank and PCI Bank got together and they formed a big part of BDO. BPI and Far East Bank got together and formed what is now BPI,” Consing said.

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