BSP supports RB mergers

A PROGRESSIVE incentive program that will encourage mergers and consolidations among rural banks (RB) has been approved in principle by the Monetary Board of the Bangko Sentral ng Pilipinas (BSP)

The Consolidation Program for Rural Banks (CPRB)—a program jointly conceptualized by the BSP, the Philippine Deposit Insurance Corp. (PDIC) and the Land Bank of the Philippines (LBP)—intends to promote mergers and consolidations among rural banks to bring about a less fragmented banking system by enabling them to improve financial strength, enhance viability, strengthen management and governance and expand market reach, among others.