The Bangko Sentral ng Pilipinas (BSP) has approved the merger of BanKo and Legazpi Savings Bank, both thrift banking arms of Ayala-led Bank of the Philippine Islands, Philstar Biz reported.
The merger consolidates BanKo, known for its microfinance and small-business lending, with Legazpi Savings Bank, which operates primarily in the Bicol region. The combined entity is expected to streamline operations and expand BPI's reach in the thrift banking sector.
BPI previously announced plans to integrate its thrift banking units to improve efficiency and strengthen its foothold in underserved markets. The BSP's nod clears the way for the final steps of the merger, which is part of the bank's broader strategy to consolidate its subsidiaries.