RURAL banks can now improve their financial capacity and generate better value for shareholders, strengthen management and governance, develop synergies and economies of scale and expand their market reach.
This developed after the Consolidation Program for Rural Banks (CPRB) was relaunched with simplified and clarified procedures for rural bank owners to easily avail the program.
“CPRB aims to promote bank mergers and consolidations that will bring about more resilient rural banks and a less fragmented banking system,” Jose Villaret Jr., vice president of the Philippine Deposit Insurance Corporation (PDIC) told Cebu Daily News through email.
The program will enable better services for clients and expand credit services to various local industries, which in turn, contribute to the sustainable development of the countryside.
Among the changes are the program’s acceptance of less than five participating banks provided that they have a capital adequacy ratio of at least 12 percent and an unimpaired capital of at least P100 million.
CPRB is a bank-strengthening incentive program jointly implemented by the PDIC, Bangko Sentral ng Pilipinas (BSP), and Land Bank of the Philippines which expired last August 2017. It has been relaunched and will be available from Oct. 26, 2017 up to Oct. 26, 2019.