The merger of China Bank Savings and Planters Development Bank has been approved by the Bangko Sentral ng Pilipinas (BSP).
Under the terms of the merger deal, China Bank would be the only surviving entity.
As part of the approval, China Bank will need to recapitalise the surviving entity to comply with the minimum capital adequacy ratio requirement and common equity tier 1 under Basel 3.
At the same time, both the entities are required to complete the merger proceedings within one year from the approval date.
China Bank implemented the share purchase deal in January 2014 to acquire Plantersbank for PHP1.86bn ($39.8m).