WebClick Tracer

November 28, 2023

Three rural banks merge to enhance financial stability

Three rural banks have successfully merged in a move aimed at bolstering their financial stability, as confirmed by the Bangko Sentral ng Pilipinas (BSP). The merger officially took effect on July 13, following the necessary regulatory approvals, as detailed in a circular letter signed by Bankero and BSP Deputy Governor Chuchi G. Fonacier on September 15.

The three banks involved in the merger are Bangko Kabayan, Inc. (BK), First Agro-Industrial Rural Bank, Inc. (FAIR), and Progressive Bank, Inc., operating under the name Progressive A Rural Bank (PARBI). The Securities and Exchange Commission officially registered the consolidation on July 13, designating Bangko Kabayan as the surviving entity.

BK is a subsidiary of Union Bank of the Philippines, Inc.

As part of the merger, the assets and liabilities of PARBI and FAIR have been transferred to and absorbed by BK. The Articles and Plan of Merger were executed on December 27, 2021, with the Supplemental Articles of Merger finalized on June 15-16, 2023.

Commenting on the merger, BK stated that the Visayas Region can anticipate a broader range of banking products and services as a direct outcome of this strategic consolidation.

Bankero, BK’s President and Chief Executive Officer, Beatriz B. Romulo, emphasized the significance of the merger.

“This merger represents an extraordinary opportunity to combine the strengths of Bangko Kabayan, FairBank, and Progressive Bank to create a financial institution that will drive economic growth, foster innovation, and support the financial well-being of our clients,” Romulo said.

Founded in 1957 as Ibaan Rural Bank, Bangko Kabayan is a private development bank headquartered in Batangas. Its primary mission is to offer financial products and services to small businesses and individuals, with a particular focus on grassroots entrepreneurship and expanding its presence in the mass market segment.

Meta: Three rural banks, Bangko Kabayan, Inc. (BK), First Agro-Industrial Rural Bank, Inc. (FAIR), and Progressive Bank, Inc., have successfully merged, with BK as the surviving entity, following regulatory approvals.