The Philippine Deposit Insurance Corp. (PDIC) has finally given its green light to the proposed merger of the Gotianun-led East West Banking Corp. (EastWest) with the largest rural bank in the Caraga region.
In a letter received by EastWest on Friday, PDIC said that it has granted its consent to the proposed merger of East West and Green Bank (A Rural Bank) Inc., with EastWest as the surviving entity.
“We shall inform you once we fully obtain both BSP [Bangko Sentral ng Pilipinas] and SEC [Securities and Exchange Commission] approval to the proposed merger,” the bank informed the Philippine Stock Exchange. No further details were provided.
Green Bank, a Butuan City-based bank, provides financial products and services to rural communities. The bank became the largest rural bank in the Caraga region after it consolidated with the Rural Bank of Alegria in 2000. Besides its 46 branches, Green Bank has 94 kiosks around the country.
In 2011, EastWest announced that it received an approval from the BSP to acquire Green Bank. This, according to the listed bank, is in line with its plan to create synergies for expansion.
Almost a year after that, the Gotianun-led bank approved a recapitalization program worth a combined P820 million for its two recently acquired rural banks, Green Bank and FinMan Rural Bank Inc.