THE BANGKO SENTRAL ng Pilipinas (BSP) has announced the approval of the merger of Zambales Rural Bank, Inc. and Bridgeway Rural Banking Corp., with the former being the surviving entity.
In a circular letter signed by Deputy Governor Chuchi G. Fonacier, the BSP said the Securities and Exchange Commission (SEC) approved the articles and plan of merger of the two banks on Feb. 18.
Their amendments were also executed in April and August last year, respectively, by and between, Zambales Rural Bank, Inc., the surviving bank, and Bridgeway Rural Banking Corp., the absorbed bank.
The assets and liabilities of Bridgeway will be transferred to and absorbed by Zambales Rural Bank, the BSP added.
“The merger took effect on Feb. 18, 2025. Zambales Rural Bank, Inc. commenced operations as merged bank on Feb. 21, 2025.”
Zambales Rural Bank was established in 1974 as a domestic rural banking corporation. It offers savings, demand and time deposit products, as well as short-term and long-term loans to rural clients covering commercial, agricultural and housing needs, among others.
The bank operates in Zambales, Bataan, Pampanga and Baguio. It currently has 12 branches, according to the latest available data on its website.
The BSP has been encouraging rural banks to consolidate as part of its Rural Bank Strengthening Program (RBSP) that was launched in 2022.
The RBSP features five time-bound tracks that aim to strengthen the capital position of rural banks: merger/consolidation, acquisition/third-party investment, voluntary exit/upgrade of banking license, capital buildup program, and supervisory intervention.
In September 2022, the BSP raised the minimum capital requirement for rural banks with a head office and as many as five branches to P50 million, while those with six to 10 branches must have a minimum capital of P120 million. Those with more than 10 branches must have a capital of at least P200 million. Rural banks have until 2027 to comply with the new rules.
Rural banks booked a combined net income of P11.56 billion in 2024, rising from P8.22 billion in 2023, latest central bank data showed.
There were 382 rural banks in the Philippines at end-February, down from 388 a year prior, BSP data showed. — Luisa Maria Jacinta C. Jocson
