MANILA -- Rizal Commercial Banking Corp.’s (RCBC) Board of Directors has approved the merger of the bank’s subsidiary, RCBC Savings Bank, with RCBC.
In a disclosure with the Philippine Stock Exchange (PSE) Tuesday, the bank said the Board’s decision was made on Monday, subject to approval by the Bangko Sentral ng Pilipinas (BSP), Securities and Exchange Commission (SEC), and Bureau of Internal Revenue (BIR).
It explained that the decision aims to allow for more efficient capital deployment, more efficient compliance with the Basel 3 liquidity ratios, optimal coordination between the branch banking networks of RCBC and RCBC Savings, medium-term improvement in the funding economics, and operational cost efficiencies.
RCBC Savings Bank is a 100-percent subsidiary of RCBC.
In a statement, the bank said its Board’s decision aims to consolidate the financial institution’s “strengths in the consumer business.”
“With this union, the customers and stakeholders of both banks can expect the same excellence in service that the RCBC brand is known for,” it said.
“With more efficient use of capital and a wider consolidated network to service its clients, RCBC can better take advantage of the opportunities in the market to fuel its growth momentum,” it added.
BSP data showed that as of end-March 2018, RCBC is the country’s top 10 universal and commercial bank in terms of asset, which amounts to PHP475.765 billion. (PNA)
