MANILA, Philippines - The number of banks operating in the Philippines continued to decline in the first half 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 618 in end-June, 20 less than the 638 in end-June last year.
The number of big banks or universal and commercial banks went up to 41 in end-June from 36 in end-June 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 in July last year amending the foreign bank law by removing the limit of foreign banks in the country earlier set at only 10.
The BSP has so far given eight foreign banks the green light to operate in the Philippines. These include Sumitomo Mitsui of Japan, Shinhan Bank of South Korea, Cathay United Bank of Taiwan, the Industrial Bank of Korea, Yuanta Bank of Taiwan, the United Overseas Bank Ltd. of Singapore, Seoul-based Woori Bank and First Commercial Bank of Taiwan.
The BSP said the number of thrift banks reached 64 in end-June from 69 in end-June last year, while the number of rural and cooperative banks decreased to 513 in end-June from 532 a year ago.