Agribank formed through rural bank consolidation

MANILA, Philippines — A new rural bank has emerged from the consolidation of four rural lenders following the approval of the Bangko Sentral ng Pilipinas (BSP) as part of efforts to strengthen the rural banking system.

Agribusiness Banking Corp. – A Rural Bank, now doing business under the name and style of Agribank, officially began operations on June 16, according to a circular signed by BSP Assistant Governor Arifa Ala.

The Monetary Board approved the consolidation through Resolution 88 dated Jan. 23. The merger brings together Agribusiness Rural Bank Inc., Banco Alabang Inc., Rural Bank of Maddela (Quirino) Inc. and Rural Bank of San Jacinto (Masbate) Inc.

The newly formed entity was registered with the Securities and Exchange Commission on Feb. 14. The BSP then granted its certificate of authority to operate as a rural bank on May 30.

The move is expected to enhance the delivery of financial services in the countryside and contribute to greater financial inclusion.

Earlier in March, Zambales Rural Bank Inc. and Bridgeway Rural Banking Corp. also merged after obtaining the necessary regulatory approvals, with Zambales Rural Bank serving as the surviving entity.

This 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.

Last November, 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. was also completed 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.