THE CENTRAL BANK has approved 17 bank mergers since 2019 to improve the industry’s resilience and financial stability.
“From 2019 to the present, the BSP has approved a total of 17 mergers, three consolidations, and one acquisition,” Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said at a forum held in Boracay on Thursday.
“As to the approved consolidations, two were consolidated under the program for rural banks,” he added.
The central bank chief said they are currently reviewing four mergers, two consolidations and one acquisition in the industry.
Mr. Diokno said while there is no ideal number of participants in the banking sector, the BSP’s focus is to maintain financial stability and has long advocated for mergers, consolidations, and acquisitions among banks.
“This is to foster…stronger and more resilient banking institutions that are adapting to ever-changing financial environments,” Mr. Diokno said.
“Mergers, consolidations and acquisitions result in banking institutions with higher capitalization, better economies of scale and wider market reach,” he added.
Earlier this month, financial regulators agreed to simplify the process for mergers, consolidations, and acquisitions. Under the agreement, these will now be processed within 55 business days from about 160 business days pre-viously.
As of end-September, the cumulative net income of the banking system rose by 35% year on year to P168.213 billion, based on BSP data.
The banking industry’s assets increased by 7.2% year on year to P20.079 trillion as of end-September. — L.W.T. Noble