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Mindanao rural bank seeks merger perks
Newly consolidated One Network Rural Bank has asked a host of incentives from the Bangko Sentral ng Pilipinas in its bid to become one of the biggest rural banks in the country.

One Network Rural Bank is the result of the three-way consolidation of the Network Rural Bank (Davao del Sur Inc.), the Rural Bank of Panabo (Davao del Sur) and the Provident Rural Bank of Cotabato (North Cotabato).

The central bank is looking at the rural bank's proposed incentives which include ease in processing the setting up of 15 new Mindanao branches within two years, the grant of thrift bank powers, and authority to accept state deposits in areas without government banks.

Alex V. Buenaventura, One Network president and spokesperson, said 2004 is an important part of the consolidation period. The rural bank has 46 branches in the Mindanao and Visayas but wants to strengthen its presence with an additional 15 branches.

As such, the bank has asked Bangko Sentral that it be allowed to set up new branches anywhere in Mindanao over the next two years. It has also asked the central bank the same authority granted to thrift banks so that it can service foreign currency deposit units or FCDU accounts.

With a paid-up capital of PhP422 million, One Network is empowered to transact money changing activities, allowing it to buy and sell foreign currency.

When it reaches a paid-up capital of over PhP650 million, it could apply for an FCDU license.

One Network has also asked Bangko Sentral the authority to open domestic letters of credit to be able to service more clients in the provinces.

Mr. Buenaventura said the bank also wants a one-time authority to accept government deposits (including from barangays) in all areas where it has branches but without government banks.

It also wants the authority to be able to resurrect licenses of dead banks from the Philippine Deposit Insurance Corp. as an allowable form of expansion.

On top of all these requested incentives, One Network is asking the Bangko Sentral to allow it to keep only one-third of normally required legal reserve requirements for a period of five years.

Mr. Buenaventura believes these incentives will help boost the consolidated bank's efforts to succeed amid a difficult economic tide. -- Iris Cecilia C. Gonzales