Rural banks Land Bank of the Philippines and Bangko Sentral ng Pilipinas (BSP) are the exploring possibility of extending the Consolidation Program for Rural Banks (CPRB) beyond its original deadline of 25 August, according to Philippine Deposit Insurance Corporation (PDIC) President Roberto B. Tan.

The CPRB aims to improve viability, the stability of rural banks, level of financial inclusion in the Philippines through offering regulatory incentives to merging rural banks that will be able to meet certain conditions regarding capital adequacy.

Rules Implemented by CPRB

In the new rules implemented by the CPRB, it states that a group of less than five (5) rural banks may apply for the services offered by the CPRB as long as the bank meet meets all the requirements.

The PDIC President also said that "The PDIC expects approvals of the two consolidation transactions by the second half of the year." He also added that a group of four rural banks are about to engage its financial advisor for the conduct of due diligence.

Source: Business Inquirer