Bangko Sentral green lights merger of 3 Mindanao cooperative banks

The Bangko Sentral ng Pilipinas (BSP) on Tuesday said it gave the merger of three cooperative banks in Mindanao the green light, seeing it as precursor to stronger cooperative banking sector in the country.
 
The merger covered the consolidation of First Community Cooperative Bank of Misamis Occidental, Cooperative Bank of Davao del Sur, and Cooperative Bank of Surigao del Sur.
 
The new entity created by the merger will now be called, Consolidated Cooperative Bank which will assume all assets and liabilities of the three cooperative banks.
 
The Monetary Board approved the merger on Feb. 16, according to the Bangko Sentral.
 
“The plan of consolidation was a collective agreement of the common shareholders of the three banks in their desire to strengthen the financial position and operating efficiency of their respective cooperative banks with the intent to become a relevant player in the socio-economic development of Mindanao,” the BSP in a statement.
 
The central bank earlier noted it is actively promoting mergers, consolidations and acquisitions of cooperative banks to promote larger and stronger institutions with more solid capital position and wider branch network enabling them to deepen their reach in the countryside.
 
The program is envisioned to spur lending activities in the unbanked and underserved areas, with a view to addressing the economic condition in the country said.
 
As an incentive to the merger, the Bangko Sentral will allow Consolidated Cooperative to establish branches or offices in major cities and towns of Mindanao.
 
Part of the incentive program gives Consolidated Cooperative the opportunity to revalue its existing properties based on fair valuation.
 



The BSP last year launched the Special Program for Cooperative Banks, with state-run Philippine Deposit Insurance Corp., for a stronger cooperative banking sector.
 
The program attracted Rabobank Group of Netherlands and DGRV-Deutscher Genossenschafts-und Raiffeisenverband E. V. of Germany to venture into Philippine cooperative banking by technical assistance or financial assistance.
 
The 40 cooperative banks in the Philippines have combined resources of P16.4 billion as of end-September last year, Bangko Sentral data showed. — VS, GMA News

http://www.gmanetwork.com/news/story/249720/economy/moneyandbanking/bangko-sentral-green-lights-merger-of-3-mindanao-cooperative-banks