Bank branch opening approvals down 11% in Q2

MANILA, Philippines - Bank branches approved for opening declined 11.3 percent in the second quarter from the previous three months, data from the Bangko Sentral ng Pilipinas (BSP) showed.

According to BSP data, 86 bank branches have been okayed for establishment from April to June, down from 97 approved the in the first quarter.

A total of 77 offices were opened during the same period, data showed. These were already part of the earlier reported 9,207 bank outlets operating as of June.

BSP has encouraged banks to set up more branches, especially in far-flung areas, as part of its financial inclusion campaign, which aims to reach out to more people in need of access to credit for their livelihood.

This, in effect, could help trickle down economic growth to grassroots level. More bank offices also create easier access to payment centers for timely bill settlements.

Broken down, regulators approved the branch opening of 46 universal and commercial banks, 27 thrift banks and 13 rural and cooperative banks, data showed.

Sy-led BDO Unibank Inc. and Gotianun-led East West Banking Corp. led seven other universal and commercial banks that applied for more branches. Both may open 15 additional offices each nationwide, data showed.

They were followed by Metropolitan Bank and Trust Co. (five branches), Rizal Commercial Banking Corp. (RCBC) (four branches), Security Bank Corp., Robinsons Bank Corp. and Development Bank of the Philippines (two branches each) and Asia United Banking Corp. and Philippine National Bank (one branch each).

Six thrift banks, meanwhile, also wanted to expand their network. The Philippine Savings Bank, Sterling Bank of Asia Inc. and BPI Family Savings Bank Inc. each want to establish five branches this year.

RCBC Savings Bank got consent for four branches, Citibank Savings Inc. with two branches and Sun Savings Bank, one branch, data showed. Ten rural and cooperative lenders also secured BSP branch approvals.