MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) has approved applications, a record for 171 new bank branches in the third quarter of last year, official data showed.
Of the 171 new outlets, 78 were for universal and commercial banks, 67 for thrift banks and 26 were for rural and cooperative banks.
The third-quarter approvals were the highest made for a particular period since the fourth quarter of 1998. These offices may be put up within three years from the date of approval.
“This is another good sign of a growing economy and a dynamic and healthy banking system,†BSP deputy governor Nestor Espenilla Jr. told The STAR. “The branch expansions will further enhance access to financial services especially in areas outside Metro Manila,†he added.
BSP has encouraged lenders to put up branches in far-flung areas to ensure financial inclusion.
Financial inclusion involves the availability of credit to finance livelihood and, in effect, trickles down economic growth to the grassroots level. More bank offices also create easier access to payment centers for timely bill settlements.
In June last year, the central bank issued Circular 759, effectively lifting bank branching restrictions and allowing lenders to put up as many offices as they intend for as long as their capital can support their expansion.
The circular followed an earlier order that removed “restricted areas†in Metro Manila where banks could put up more offices. In June 2011, banks were again allowed to branch out to cities of Mandaluyong, Manila, Parañaque, Pasay, Pasig, Quezon, San Juan and Makati.
These areas were left out by BSP in a branching liberalization measure in 2005, saying they were already adequately serviced by banks.
“Ultimately, we should also rely on banks’ sound decision-making. After all, they are the first to suffer from wrong business decisions,†Espenilla said when asked on the possibility of bank congestion.
Leading other big banks, China Banking Corp. was granted 22 additional branches nationwide, data showed. It was followed by East West Banking Corp. (16 branches), Rizal Commercial Banking Corp. (RCBC) (12 branches), Robinsons Bank Corp. (10 branches) and Land Bank of the Philippines (five branches).
Asia United Bank Corp., Security Bank Corp. (four branches each), Metropolitan Bank and Trust Co. (three branches), Development Bank of the Philippines and BDO Unibank Inc. (one branch each) were also given the go-signal to put up more offices.
Among the thrift banks, China Bank Savings got most of the approvals, with 40 new offices, followed by Ty-led Philippine Savings Bank with 11. The thrift banking arm of the United Coconut Planters Bank and RCBC were next with six and five new offices, respectively.
Meanwhile, five branches of One Network Bank, the country’s biggest rural bank, were also approved.
The new branches, when completed, will add up to the local banking network, consisting of 9,301 offices as of September 2012.