Microfinance Focus, September 2, 2011: Rizal Commercial Banking Corporation (RCBC), in a filing with the Philippines Stock Exchange has proposed to merge two of its subsidiaries – Rizal Microbank and President J.P. Laurel Rural Bank, Inc. to reinforce its microfinance operations countrywide.

Rizal Microbank which was formerly known as Merchants Savings and Loan Association, Inc. is a thrift bank. The merger is subject to the final approval of the Bangko Sentral ng Pilipinas.

RCBC’s executive vice president John G. Deveras is reported to have said, “We want to fortify our microfinance arm through going nationwide so it’s better to have one vehicle for our business”.

RCBC began its microfinance business in 2009 and has surpassed the P200 million disbursement level. The bank expects to hit the P300 million disbursement threshold by November this year.