RCBC, thrift bank unit to merge for ‘efficient capital deployment’

Rizal Commercial Banking Corp. is planning to take thrift banking subsidiary RCBC Savings Bank in a merger to manage operational costs.

In a regulatory filing submitted by RCBC corporate planning head Christina Alvarez, the Yuchengco-led lender said its board of directors approved to merge RCBC Savings Bank, its wholly owned subsidiary, into the parent bank subject to regulatory approvals.

RCBC said the proposed merger will facilitate for the following objectives:

• More efficient capital deployment

• Optimal coordination between the branch banking networks of RCBC and RCBC Savings

• Medium-term improvement in funding

• Operational cost efficiencies

• More efficient compliance with Basel 3 liquidity ratio

According to the Bangko Sentral ng Pilipinas, the Basel 3 liquidity ratio requires banks to have “high quality” liquid assets that can be easily converted into cash to service liquidity requirements over a 30-day stress period.

The transaction is subject to the approval of the Securities and Exchange Commission, Bureau of Internal Revenue, and the BSP, RCBC said.

The details of the transaction, including the number of shares subject of the merger and the timetable, are yet to be announced.

“The details of the transaction will still be subject to regulatory approvals,” RCBC said. —Ted Cordero/VDS, GMA News