BSP OKs application of 81 new bank branches in 1st quarter

MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) has approved the application of 16 big and small banks to open 81 new branches nationwide as they continue to build up their networks.

The BSP gave six universal and commercial or big banks to put up 47 new branches across the country. These are the Bank of Commerce with 15, BDO Unibank Inc. with 11, Security Bank Corp. with 11, state-run Land Bank of the Philippines with seven, China Banking Corp. with two, and Rizal Commercial Banking Corp. with one.

The bank regulator also approved the application of four thrift or mid-sized banks to open 16 new branches – First Consolidated Bank Inc. with five, RCBC Savings Bank with four, Card SME Bank Inc. with four, and Philippine Business bank with three.

Likewise, the central bank also allowed six rural banks to set up 18 more branches all over the country. These are Rural Bank of Rizal (Zamboanga del Norte) with five, Rural Bank of Limay (Bataan) with four, Bangko Kabayan with three, Cantilan Bank Inc. with three, LifeBank with two, and Rural Bank of Angeles with one.

Based on the latest report of the BSP, 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.

Data showed the number of big and small banks operating in the country reached 622 in end-March this year, 24 less than the 646 in end March last year.

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

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

The BSP together with PDIC and Land Bank of the Philippines have issued the guidelines for the Consolidated Program for Rural Banks (CPRB) to further encourage mergers and consolidations among rural banks.

On the other hand, the BSP reported the number of branches and other offices of Philippine banks went up 4.2 percent to 10,277 last year from 9,810 in 2014.

The branches of big banks increased 3.2 percent to 6,053 from 5,865 while the branches of thrift banks went up by 11.1 percent to 2,064 from 1,858.