MANILA - Bank of the Philippine Islands (BPI) said Wednesday it will merge with its thrift banking subsidiary BPI Family Savings Bank (BFSB), with BPI as the surviving entity.

The Ayala-led lender said it hopes to complete the merger this year "subject to shareholder and regulatory approvals."

The reduction in the gap in regulatory reserve requirements between commercial banks and thrift banks was a factor in the timing of the transaction, the company said.

Cezar Consing, BPI President and CEO and BSFB Chairman, said the merger will benefit customers, employees and shareholders.

“As One BPI, our 8.5 million customers will be able to enjoy the full suite of the BPI group’s products, via all our digital and physical channels. Similarly, as One BPI, our employees will have the ability to work across a larger, more varied bank, while having continuity of tenure and job level,” he said.

BFSB is the country's largest thrift bank with P287 billion in assets, P235 billion in deposits and P227 billion in loans, and has approximately 3,000 employees, BPI said.

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