The Role of Legal Compliance and Sound Business Practices in the Sustainability of Rural Banks

This study titled “The Role of Legal Compliance and Sound Business Practices in the Sustainability of Rural Banks,†explores the vital connection between adherence to legal standards, ethical operations, and the long-term sustainability of rural banking institutions. The findings revealed that legal compliance among rural banks encompasses multiple dimensions, including strict observance of Bangko Sentral ng Pilipinas (BSP) regulations, maintenance of institutional integrity, adherence to legal certifications, effective reserve management, and the assurance of stability and insurance. Moreover, sound business practices emerged as essential pillars of sustainability, highlighting profitability, growth, market assessment, strategic planning and monitoring, innovative marketing, and the significant influence of leadership styles—whether visionary, autocratic, or supportive—along with financial rewards and employee recognition. Economic themes underscored the banks’ continuous efforts to enhance financial performance through policy adaptation and effective strategies led by motivated and competent officers. Likewise, legal themes emphasized the banks’ identity as good corporate citizens committed to upholding safe, ethical, and sound banking operations. Overall, the study affirms that the sustainability of rural banks is deeply anchored in their unwavering legal compliance, dynamic leadership, and the consistent execution of sound business practices that safeguard both institutional growth and public trust.