The Bangko Sentral ng Pilipinas (BSP) has approved the merger of listed EastWest Banking Corp. and Green Bank, the largest rural bank in the Caraga Region, a move that is expected to expand EastWest’s synergies across the country.
“We would like to inform the Exchange that the BSP, in its letter dated 2 April 2014, has formally approved the Plan of Merger and Articles of Merger of EastWest Banking, Corp. and Green Bank [A Rural Bank] Inc. [GBI], with East West as the surviving entity,” the Gotianun-led bank informed the Philippine Stock Exchange on Thursday.
Based in Butuan City, Green Bank provides financial products and services to rural communities. It became the largest rural bank in the Caraga Region after it consolidated with the Rural Bank of Alegria in 2000. Aside from its 46 branches, Green Bank has 94 kiosks around the country.
The Philippine Deposit Insurance Corp. (PDIC) in November last year already approved the proposed merger between EastWest and Green Bank.
In a letter received by EastWest, PDIC said it has already granted its consent to the proposed merger of the two banks, with EastWest as the surviving entity.
However, EastWest has yet to obtain the approval of the Securities and Exchange Commission to the proposed merger.
EastWest announced its planned merger with Green Bank in 2011, specifying that the transaction would support the expansion of its synergies across the country.