2 rural banks merge as industry consolidation continues

MANILA, Philippines — Two more rural banks have merged as part of ongoing efforts to strengthen the financial sector, with the Bangko Sentral ng Pilipinas (BSP) continuing to promote consolidation for improved risk management.

In a circular letter signed by BSP Deputy Governor Chuchi Fonacier, the central bank announced that Zambales Rural Bank Inc. and Bridgeway Rural Banking Corp. have officially merged.

The merger took effect on Feb. 18 after obtaining the necessary regulatory approvals, with Zambales Rural Bank serving as the surviving entity.

“The entire assets and liabilities of Bridgeway Rural Banking Corp. will be transferred to and absorbed by Zambales Rural Bank,” Fonacier said, adding that the merged bank began operations on Feb. 21.

This marks the first recorded rural bank merger of 2025, continuing the trend of consolidations in the banking sector as institutions seek to improve operational efficiency, financial resilience and regulatory compliance.

The merger follows a series of similar transactions in the past two years as part of the BSP’s push for a stronger and more stable rural banking industry.

In November last year, the merger of Producers Savings Bank Corp. with the Community Rural Bank of San Felipe (Zambales) Inc. took place, with Producers Savings Bank as the surviving entity.

The merger of Queen City Development Bank Inc. with Queen City Rural Bank Inc. also happened in November 2024, with QCDB as the surviving bank.

In April 2024, Producers Savings Bank also merged with Rural Bank of Maasin (Southern Leyte) Inc.

Meanwhile, multiple rural banks also consolidated in 2023. This includes the merger of Banco Santiago de Libon Inc. and the Municipal Rural Bank of Libmanan, with Banco Santiago de Libon as the surviving entity.

Camalig Bank Inc. also merged with Municipal Rural Bank of Nabua, in October 2023, while a tripartite merger involving Bangko Kabayan, First Agro-Industrial Rural Bank and Progressive Bank took place in September 2023, with Bangko Kabayan as the surviving lender.

With the increasing number of mergers in the rural banking sector, the BSP continues to encourage consolidation as a way for smaller financial institutions to remain competitive while ensuring stability in the Philippine financial system.