MANILA — The Bangko Sentral ng Pilipinas (BSP) is set to sign with several other government agencies an amended rules governing consolidation of rural banks.
BSP Deputy Governor Chuchi Fonacier said they are set to relaunch the two-year Consolidation Program For Rural Banks (CPRB), which was implemented starting August 25, 2015.
“It’s a relaunching with some amendments. There will be some enhancement,” she said, with the signing of the new rules set “in the coming weeks.”
CPRB targets to strengthen the rural banking industry by allowing players to improve their financial capacity, enhance their viability, strengthen management and governance, generate synergies and economies of scale through stronger infrastructure, systems and resources and widening their market reach.
Its original Implementing Rules and Regulations (IRR) states that there should be at least five banks with combined capital of at least PHP100 billion before their application can be assessed.
Aside from the BSP, the other implementing agencies of the CPRB are the state deposit insurer Philippine Deposit Insurance Corporation (PDIC), state-owned Land Bank of the Philippines, and the Countryside Financial Institution Enhancement Program (CFIEP).
Earlier, BSP Governor Nestor A. Espenilla Jr. said three groups have applied under CPRB but one group is composed only of four banks with combined capital of more than PHP100 billion.
Fonacier said applications of these three are in various stages now, with one already in advance stage or are now gathering the necessary documents while the other two are still in the valuation process.
She is optimistic that application of one of the groups will be approved “early next year.” (PNA)
