RCBC to acquire rural bank

MANILA, Philippines - Yuchengco-led Rizal Commercial Banking Corp. (RCBC) on Friday disclosed that it will be acquiring a Batangas-based rural bank as part of its strategy to move into microfinance. RCBC will be infusing P375 million in a period of three years in exchange for acquiring the JP Laurel Rural Bank, the lender told the Philippine Stock Exchange. The merger will take effect once regulatory authorities approve the transaction. "This is one of the first major steps taken by RCBC to enter the microfinance business and assist in the development of small businesses," RCBC said. The JP Laurel Rural bank "has a rich history in serving the community with the prominent Laurel family of Batangas behind it," RCBC added. The rural bank’s location "is an important market for the overall business thrust of RCBC for its various products, including microfinance," the Yuchengco-led lender said. Earlier, the BSP disclosed that about 200 Filipino banks have been mandated to restore their capital and improve their operations. The Legacy Group, which operated rural banks, recently collapsed owing to weak capital structures and operation processes. - GMANews.TV