Producers Bank is now officially a thrift bank after it has obtained approval from the BSP to upgrade its banking license from a rural bank to a thrift bank.
The Monetary Board approved on 13 August 2009 Producers Bank’s application to move a notch higher with the conversion of its license from a rural bank to a thrift bank.
The BSP granted Producers Bank its certificate of authority to operate as a thrift bank on 24 August 2010 and the Bank started its operations as a thrift bank on 27 September 2010.
Mr. Edmundo C. Medrano, Vice Chairman, President and COO of Producers Bank and now also the President of Bank Victorias, said that, “The upgrading of Producers Bank from a rural bank to a thrift bank had not been easy as the entire approval process took all of two (2) years to complete. But it is well worth the wait considering that there is a moratorium on the grant of new banking licenses which was in effect since 1999 and we are proud to claim that Producers Bank is the first rural bank with head office in Metro Manila to be upgraded to a thrift bank with head office also in Metro Manila where the capital requirement is at least PhP325.0 Million.”
Prior to its upgrading to a thrift bank status, Producers Bank had the largest branch network in Luzon and second largest branch network nationwide among the country’s rural banks. With over PhP4.4 Billion in total resources as of end-2009, Producers Bank was the third largest rural bank in terms of total assets.
Among its numerous awards, Producers Bank was a recipient of the Hall of Fame Award (2005) and the Golden Award (2008) from the Land Bank of the Philippines for being the most outstanding countryside financial institution for several years.
With the upgrading of Producers Bank‘s banking operations, it is expected to expand the Bank’s array of products and services. It will continue to focus on the countryside and will continue to serve its main customers – the progressive farmers, small and medium enterprises (“SMEs”) and home and motor vehicle buyers. The Bank will soon add domestic trade finance to its product offerings (domestic letters of credit, trust receipt financing, etc.).
Producers Bank is also proud to announce the other recent approvals that it obtained from the BSP, namely: (i) authority to participate directly in the clearing operations of the Philippine Clearing House Corporation (“PCHC”) and the BSP (the PCHC approved Producers Bank’s application for associate membership on 26 July 2010); (ii) the grant by the BSP of a collateralized overnight clearing line in the amount of PhP82.0 Million; and the (iii) outsourcing of switch hosting and ATM driving/electronic banking operations with Bancnet, Inc., the country’s largest ATM consortium.
With its banking capabilities, state-of-the-art core banking system and geographical reach, the new bank that will result from the consolidation of Producers Bank and Bank Victorias will be moving inexorably closer to its goal of becoming one of the most admired and most preferred development finance institutions in the Philippine countryside and in the process help people create more wealth.