BSP sees more mergers, acquisitions in 2018.
MANILA, Philippines The Bangko Sentral ng Pilipinas (BSP) expects 2018 to be a busy year for the banking industry with more transactions involving mergers and acquisitions. BSP Deputy Governor Chuchi Fonacier said the regulator sees more mergers and acquisitions as the BSP offers incentives through various programs including the Consolidation Program for Rural Banks (CPRB).
"We expect more mergers and acquisitions. The BSP is also providing incentives for them and they know they need to strengthen their operations to achieve economies of scale," she said.
Fonacier said the BSP regularly receives proposals from big banks to acquire some small banks. On the average, she explained, the BSP processes about six transactions involving mergers and acquisitions per year.
"Maybe for those types of transactions we would average six in a year, so we are expecting that kind of number as well for this year (2018)," she said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 BSP Governor Nestor Espenilla Jr.
and Philippine Competition Commission chairperson Arsenio Balisacan recently signed a memorandum of agreement (MOA) to promulgate rules on bank mergers and acquisitions. The BSP and PCC also agreed to monitor pricing, mergers, acquisitions and other competition-related issues with regard to BSP supervised financial institutions (BSFIs), their payment system arrangements, and other activities regulated by BSP.
Both parties also agreed to promptly notify the other of any actual, potential or emerging competition concerns relating thereto in the course of their performance of their respective duties and functions. BSP and PCC would also consult each other on the formulation of new issuances, regulations and/or amendments to existing regulations that may impact the policy and regulatory framework governing BSFIs.
Both agencies also committed to hold consultative meetings on matters of common concern such as actions that the PCC is considering with respect to BSFIs, those involving competition-related matters and the stability of the monetary and financial system.
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|Publication:||Philippines Star (Manila, Philippines)|
|Date:||Dec 25, 2017|
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