The Bangko Sentral ng Pilipinas (BSP) has approved the merger of two Ayala-led Bank of the Philippine Islands (BPI) thrift banking units, as reported by the Philippine Star.
BPI Direct BanKo Inc. and Legazpi Savings Bank Inc. will merge, with BanKo set to become the surviving entity.
The Monetary Board approved the merger through a resolution dated 2 July, as reflected in a BSP letter dated 5 July.
Both banks’ boards ratified the merger on 22 January, and their respective stockholders confirmed the transaction on 4 May.
The Philippine Competition Commission cleared the deal on 18 May, passing the country’s antitrust review.
The merger is not yet in effect as it still requires approval from the Securities and Exchange Commission.
“Merger effective on Oct. 1, 2026, subject to SEC approval,” the banks said in a joint notice.
It comes after the BPI board’s approval of the merger back in December 2025.
How the Merger Will Work
Based on BSP data, BanKo ranks as the country’s seventh-largest thrift bank by assets, at PHP 67.62 billion. Legazpi Savings Bank ranks 11th, with PHP 22.74 billion in assets.
Once the merger takes effect, BanKo will absorb Legazpi Savings Bank.
Deposits held by Legazpi Savings Bank clients will transfer to BanKo as deposit liabilities of the surviving bank, under the terms that already apply to BanKo’s own deposit products.
The banks noted that PDIC consent is no longer required for bank mergers, consolidations, and acquisitions.
This follows amendments introduced under Republic Act 11840.
A Bigger Platform for Digital Microfinance
The consolidation adds scale to BanKo, which operates as BPI’s digital-first microfinance arm rather than a conventional thrift bank.
BanKo serves self-employed micro-entrepreneurs through a mobile app that supports account opening, loan applications, and bill payments.
The bank has continued expanding its fintech partnerships in recent months, including a payments infrastructure upgrade with ACI Worldwide and a microfinance lending programme with Jollibee Group Foundation for onion farmers.
Featured image: Edited by Fintech News Philippines based on an image by the Bank of the Philippine Islands (BPI) via Facebook.
