BSP expects more mergers among small banks

Categories: Business Updates

Date Posted: 22 Apr 2014

A number of rural and cooperative bank merger and consolidations is expected to occur this year, a Bangko Sentral ng Pilipinas or BSP (central bank) official said. The central bank has been supporting mergers, acquisitions, and consolidations especially for small banks to create stronger institutions and also to weed out problematic lenders. The BSP Deputy Governor Nestor A. Espenilla Jr. said that creating a larger and stronger entity results in being able to hire the right people to run the business and also afford better equipment. The BSP in December revived its Strengthening Program for Cooperative Banks (SPCB) and renamed it as SPRB Plus.