100 bank branches opened in Q2
Local banks opened a hundred new branches in the second quarter of the year, ahead of the lifting of restrictions in the expansion of physical networks, regulators reported this month.
Data released by the Bangko Sentral ng Pilipinas (BSP) showed banks maintaining their year-on-year rate of expansion at the end of the first semester, improving their reach in the countryside.
Bank network expansion may accelerate in the coming months following the lifting of branching restrictions in Metro Manila in July.
At the end of June, there were 10,120 bank offices in the country. The number includes head offices, branches and so-called other bank offices or OBOs.
The increase in branches came despite a slight reduction in the number of banks in the country to 664 from 667 at the end of March, following the closure of three rural banks.
Year-on-year, the number of bank offices was up 6 percent in June, maintaining the rate of growth of 5.7 percent seen in the first three months of 2014.
Most banks in the county are small rural banks catering to their respective communities.
Universal and commercial banks represent about 90 percent of the banking industry in terms of assets and resources.
In July, the BSP lifted rules that prohibited banks from opening too many branches in certain areas in Metro Manila, particularly places where other banks were already present.
The restrictions were imposed to avoid the overcrowding of banks in the metropolis and, at the same time, encourage lenders to expand their networks in the provinces.
As the number of banks increased, non-bank financial institutions declined in count, albeit at a modest pace. At the end of June, non-bank financial institutions numbered 17,862, slightly lower than the 17,933 recorded at the end of March.
Most of these were pawnshops, which totaled 17,513 as of end-June, lower than the 17,584 in end March. Other non-bank financial institutions are non-stock savings and loans associations, and lending companies.
