BSP clears Chinabank, Plantersbank merger

MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) has finally approved the merger between China Bank Savings Inc. and Planters Development Bank.

China Bank would be the surviving entity in the merger of the two banks.

As part of the approval, China Bank is required to recapitalize the surviving entity to meet the minimum capital adequacy ratio (CAR) requirement and common equity tier 1 (CET 1) under Basel 3.

The BSP is also requiring both banks to complete the merger within one year from the date of approval.

Likewise, the central bank is mandating China Bank to secure the consent of state-run Philippine Deposit Insurance Corp. (PDIC) of its merger with Plantersbank and at the same time submit the approved Articles of Merger by the Securities and Exchange Commission (SEC) to the BSP.

In January last year, China Bank implemented the share purchase agreement (SPA) to buy Plantersbank for P1.86 billion.

 Both banks believe the merger is beneficial also to their clients who will be dealing with a much bigger bank with better and more products and services to provide for their specific banking needs.

The China Bank Group includes China Bank, China Bank Savings, Unity Bank, CBC Insurance Brokers Inc., and Bancassurance affiliate Manulife China Bank Life Assurance Corporation (MCBLife).

China Bank offers a wide range of financial products and services through over 485 branches including those of subsidiaries China Bank Savings and Plantersbank.

It is adding 30 more branches this year after opening seven China Bank and eight CBS branches since January.