Number of active banks down to 622 in Q1

MANILA, Philippines - The number of banks operating in the Philippines continued to decline in the first quarter amid the continued consolidation of banks as well as the exit of weaker players particularly rural banks, the Bangko Sentral ng Pilipinas (BSP) reported yesterday.

Data from the central bank showed the number of big and small banks operating in the country reached 622 in end-March, down from 646 a year ago.

The number of big banks or universal and commercial banks went up to 41 in end-March from 36 in end-March last year with the entry of new foreign banks.

These comprised of 21 universal banks consisting of 12 private domestic banks, three government banks, and six foreign bank branches as well as 20 commercial banks comprised of five private domestic banks, two foreign bank subsidiaries, and 13 foreign bank branches.

President Aquino signed RA 10641 amending the foreign banks law by removing the limit of foreign banks in the country earlier set at only 10.

So far, the BSP has also allowed six more foreign banks to set up shop in the Philippines. These include Sumitomo Mitsui of Japan, Cathay United Bank of Taiwan, the Industrial Bank of Korea, Seoul-based Shinhan Bank, Yuanta Bank of Taiwan, and United Overseas Bank Limited (UOB) of Singapore.