Posted on September 1st, 2009
Producers Rural Banking Corp. will soon become a thrift bank. Currently the fourth largest rural bank in the country, Producers Bank has obtained approval from the Bangko Sentral ng Pilipinas (BSP) to upgrade its banking license to thrift banking.
Edmundo Medrano, Producers Bankâ€™s vice chairman, president and chief operating officer, said that BSPâ€™s policy-making Monetary Board approved its application to move a notch higher with the conversion of its license from a rural bank to thrift bank, through BSPâ€™s resolution No. 1158 dated August 13.
With the upgrading of its banking operation, Producers Bank is expected to expand the bankâ€™s array of products and services.
â€œThe bank will continue to focus on the countryside and will continue to serve its main customers â€“ the progressive farmers, small and medium enterprises and microfinance non-government organizations (NGOs). Producers Bank, will however add consumer loans, particularly end-user housing loans, to its product offerings as well as domestic trade finance,â€ Medrano said.
The release of its thrift bank license came after its recent acquisition of a 49% stake in Iloilo City Development Bank (ICDBank), a 46-year old thrift bank based in Iloilo City.
Thrift banks with head office located in Metro Manila are mandated by the BSP to put up a minimum capital of P325 million. Producers Bank has already exceeded this minimum requirement. Its head office is located in Ortigas Center, Pasig City.
Medrano said, â€œProducers Bank fill file immediately requests for approval to participate directly in the clearing operations of the BSP and Philippine Clearing House Corp. (PCHC), apply for a clearing account with the BSP, as well as for a fully secured overnight clearing line and finally for membership in the PhilPaSS.â€
PhilPaSS or the Philippine Payment and Settlements System, is a real-time gross settlement system owned and operated by the BSP for the banking system.
Among the countryâ€™s 658 rural banks, Producers Bank has the biggest branch network in Luzon and second largest branch network nationwide.