The merger between China Bank Savings Inc. (CBS) and Unity Bank has been approved by the Monetary Board of the Bangko Sentral ng Pilipinas (BSP).
In a statement, CBS said that the merger was approved on November 21, 2013, with the savings bank as the surviving bank, on condition that the merger will be implemented within six months.
CBS is a thrift bank subsidiary of China Bank, while Unity Bank, a Rural Bank Inc., is a Pampanga-based rural lender.
The savings bank added that exactly a year ago, BSP approved China Bank’s acquisition of 99.95 percent of Unity Bank’s outstanding subscribed capital stock.
“The acquisition boosts CBS’ 51 branches by a total of 39 branches—15 existing Unity Bank branches and 24 branch licenses in the restricted areas granted by BSP,” it stated.
China Bank’s purchase of Unity Bank supports BSP’s Strengthening Program for Rural Banks Plus, a program that aims to effectively serve the countryside and improve the delivery of financial services to rural communities by strengthening the thrift and rural banking industry. At CBS’ annual stockholders meeting on July 18, 2013, the stockholders approved the merger with Unity Bank.
The savings bank noted that BSP’s nod is one of the three regulatory approvals needed to effect the merger. The Philippine Deposit Insurance Corp. earlier gave its approval, while CBS is awaiting the consensus of the Securities and Exchange Commission.
With the merger, CBS said that it is on track to meet its target of 73 branches by year-end and 100 by next year.