Banks’ branch networks boosted by BSP liberalization

Sixty-two more branches and offices of existing commercial, thrift and rural banks opened in the second quarter alone, a development the Bangko Sentral ng Pilipinas said was an indication of improving accessibility of financial services in the country.

In a report, the BSP said the 62 additional bank branches are situated in and outside the National Capital Region. This is consistent with the objective of having more banks not only in urban but also in rural areas.

Some banks opened more than one additional branch. For instance, Sterling Bank of Asia opened five new branches, while China Banking Corp., Bank of Commerce and Asia United Bank each opened four new branches.

Philippine National Bank, PSBank and China Bank Savings Inc. each opened three more branches.

Meantime, Robinsons Savings Bank opened four “other banking offices,” which are smaller than usual branches in terms of volume of deposits and other transactions that can be accommodated.

The bank branches and offices that opened in the second quarter are on top of the 54 that opened in the first quarter, by the end of which total number of banks’ head offices, branches, and “other offices” totaled 8,870.

The BSP said more bank branches and offices are expected to have opened or to open in the second half of the year based on the approvals it has granted to banks’ applications. It said that from April to June, it had approved the opening of 56 more branches and offices, the actual openings of which are expected to happen soon.

Regulators said the number of bank branches and offices that are expected to open are expected to increase with BSP’s easing of restrictions on bank branching.

In particular, banks that had less than 200 branches as of end-2010 are now allowed to put up more branches in key cities in Metro Manila where bank branching was previously prohibited. These include Makati, Mandaluyong, Manila, Parañaque, Pasay, Pasig and San Juan.

Moreover, rural banks, which are mandated to provide banking services in rural areas, are now allowed to put up more than one branch in Metro Manila as long as said branch would provide microfinance services.—Michelle V. Remo