2 rural banks merge, 1 ordered closed

The Philippine rural banking sector saw numerous regulatory actions in recent months, as two rural banks have consolidated their operations while one lender was ordered to close shop.

- By KEISHA TA-ASAN

In a circular letter posted by the Bangko Sentral ng Pilipinas, the BSP said the Securities and Exchange Commission has approved the merger between Producers Savings Bank Corp. (PROSB) and Community Rural Bank of San Felipe (Zambales) Inc. (CSNFE).

The decision was finalized on Oct. 30 and consolidated the two entities, with PROSB as the surviving corporation. The Articles and Plan of Merger were executed on Jan. 30 and Feb. 15, respectively.

Under the agreement, all assets and liabilities of CSNFE will be absorbed by PROSB, bolstering its capacity to serve rural communities.