BSP approves opening of 122 bank branches in Q2

MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) has given universal, commercial, thrift, and rural banks the greenlight to open and reopen a total of 122 branches, other banking offices, and microbanking offices all over the country in the second quarter of the year.

BSP Deputy Governor Nestor Espenilla Jr. issued Circular Letter 2011-065 containing the approved appplications of banks for new banking offices and opened or re-opened banking offices from April to June this year.

The BSP approved the application of Citibank NA to open another banking office in Taguig City while Metropolitan Bank and Trust Co. of taipan George SK Ty was allowed to open a branch in San Pedro, Laguna and San Fernando City in La Union.

State-owned Development Bank of the Philippines was allowed to open branches in Vigan, Batangas City, Sta. Cruz in Laguna, and Carcar City while Security Bank Corp. was given the greenlight to open branches in Alicia in Isabela and Sta. Maria in Bulacan. Maybank Philippines was allowed to set up two new branches in Taguig City.

The BSP also approved the applications of Philippines Savings Bank, RCBC Savings Bank, Philippine Business Bank Inc., Cuyapo Rural Bank Inc., Insular Rural Bank, One Network Rural Bank Inc., Philippine Rural Bank, Bangko Nuestra Sra Del Pilar, Tamaraw Rural Bank, Rural Bank of Lebak, RTB Bank Inc., Tiaong Rural Bank, Rural Bank of Cauayan, AMA Bank, Rural Bank of Camalig, St. Michael Rural Bank, Sunrise Rural Bank, Summit Bank, and Vision Bank to open new branches.

The BSP has given universal, commercial banks, and thrift banks until October 11 to file their applications to set up new branches in restricted areas that include the cities of Makati, Mandaluyong, Manila, Paranaque, Pasay, Pasig, Quezon, and San Juan.

The 90-day period for filing of branching applications under Phase 1 of the two-phased lifting of the moratorium on the establishment of bank branches in the eight “restricted areas” of Metro Manila started last July 14.

Last June, the BSP approved a two-phased liberalization approach that would fully lift the bank branching restriction in key cities in Metro Manila starting 2014 to promote a competitive market environment conducive to a better and improved quality of financial services delivery.

Under the first phase, second-tier universal and commercial banks and thrift banks that have less than 200 branches in restricted areas as of December last year would be allowed to apply and establish branches in the restricted areas until June 30, 2014.

To qualify for restricted area branches, a universal or commercial bank must have a combined capital accounts of at least P10 billion while a thrift bank should have at least P3 billion. Banks with lower combined capital accounts would still be allowed to establish branches as long as they execute an undertaking to build up capital for a maximum period of not later than end June 2014.