BSP OKs merger, license surrender of rural banks

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December 29, 2025 | 12:00am

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has approved a merger involving two rural banks and the voluntary surrender of another rural bank’s license, underscoring the continued consolidation across the countryside banking sector.

In separate circular letters signed by BSP Deputy Governor Lyn Javier, the Monetary Board approved the merger of Rural Bank of Rosario (La Union) Inc. (ROSLU) and Rural Bank of Agoo, Inc., with the former emerging as the surviving bank. It also approved the voluntary surrender of the banking license of Rural Bank of Matag-ob (Leyte), Inc.

In circular letter CL-2025-046, the BSP said the Securities and Exchange Commission (SEC) approved on Dec. 27, 2024 the articles of merger and plan of merger executed on Dec. 19, 2022 by and between ROSLU, the surviving bank, and Rural Bank of Agoo, Inc., the absorbed bank.

Under the merger, “the entire assets and liabilities of AGOO will be transferred to and absorbed by ROSLU,” the BSP said.

The central bank added that “the merger took effect on Dec. 27 2024,” while ROSLU “commenced operations as a merged bank on Feb. 3, 2025.”

Meanwhile, in a separate circular letter, the Monetary Board approved “the voluntary surrender by Rural Bank of Matag-ob (Leyte), Inc. of its banking license to the Bangko Sentral ng Pilipinas.”

The BSP did not provide further details on the reasons behind the surrender, but said the action was approved by the Monetary Board following the bank’s request.

The latest regulatory actions add to a growing list of rural bank mergers, acquisitions and exits this year as the BSP continues to encourage consolidation to improve efficiency, expand service reach and strengthen the capital base of smaller financial institutions.

Earlier in September, the BSP approved the purchase and assumption of assets and liabilities of Rural Bank of Leganes (Iloilo), Inc. by Queen City Development Bank Inc., another consolidation move in the countryside banking sector. QCDB completed the purchase and assumption transaction effective Sept. 1.

In July, the BSP also announced the merger of MANOR Bank – A Rural Bank Corp. and the Rural Bank of Casiguran (Aurora) Inc., with MANOR as the surviving entity.  The merger officially took effect on June 2 after securing regulatory approvals, including the SEC’s approval of the articles and plan of merger on April 29.

In June, Agribusiness Banking Corp. emerged from the consolidation of four rural lenders, namely Agribusiness Rural Bank Inc., Banco Alabang, Inc., Rural Bank of Maddela (Quirino) Inc. and Rural Bank of San Jacinto (Masbate) Inc. The BSP granted Agribank its certificate of authority to operate as a rural bank on May 30.

Meanwhile in February, Zambales Rural Bank Inc. and Bridgeway Rural Banking Corp. merged after the banks obtained the necessary regulatory approvals, with Zambales Rural Bank serving as the surviving entity.