Bank consolidation OK’d

Posted on June 29, 2011 08:42:35 PM

Bank consolidation OK'd

THE BANGKO SENTRAL ng Pilipinas has approved the consolidation of Valiant Rural Bank, Inc. (Valiant Bank), Rural Bank of Sapian, Inc. and Rural Bank of Ma-ao, Inc., with Valiant Bank as the surviving entity.
"The central bank approved Valiant Bank's consolidation with Rural Bank of Sapian and the Rural Bank of Ma-ao," said Ian Eric S. Pama, Valiant Rural Bank, Inc. president and the incoming president of the Rural Bankers Association of the Philippines, in a phone interview yesterday.

The consolidation will allow Valiant Bank to increase its branch network which would in turn allow it to expand its loan services in Visayas.

"With the opening of new branches it will allow Valiant Bank to expand its loan portfolio in the small-medium enterprises sector, as well as micro- and agri loans," Mr. Pama said.

"The bank has so much excess liquidity through these years so this consolidation of Valiant Bank with the two rural banks is an opportunity for us to grow our loan portfolio," he added.

Rural banks are known for their expertise in serving the countryside, where they offer products such as micro-agri loans, micro-housing loans and micro-insurance.

Valiant Bank has one head office, two branches and five business lending centers within Ilo-Ilo City.

The Rural Bank of Sapian, meanwhile, has a head office in Poblacion, Sapian in Capiz, while the Rural Bank of Ma-ao has five business lending centers in Bago City in Negros Occidental.

Due to the consolidation, the central bank allowed Valiant Bank to convert its five business lending centers -- offices where it could only give out loans but not take deposits -- to regular branches.

Mr. Pama said, they were also given five new banking licenses by the BSP.

Valiant Bank has applied with the central bank the conversion of the Rural Bank of Ma-ao's five business lending centers to five regular branches.

"We are currently waiting for the central bank's approval to convert the five business lending centers of the Rural Bank of Ma-ao to fully operational branches," he said.

"We will just add tellers and savings book keepers and the business lending centers may be considered as a regular branch," he added.

After the completion of the consolidation (and in the condition that the BSP allows the conversion of the Rural Bank of Ma-ao's five business lending centers to regular branches)Valiant Bank will have a total of 19 branches.

Asked when the consolidation of the three banks would be completed, he said, they are still awaiting for the approval of the articles of the merger which is now with the Securities and Exchange Commission. -- Ann Rozainne R. Gregorio

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