BSP OKs creation of ‘branch-lite’ bank units
To serve the unbanked population in more than 500 cities and towns, the Bangko Sentral ng Pilipinas (BSP) has issued rules allowing banks to put up “branch-lite” units nationwide.
In a statement, the BSP said the Monetary Board, its policymaking body, last week approved the guidelines that would govern the establishment of bank branch-lite units to “facilitate greater access to efficient and competitive financial products and services.”
The BSP said branch-lite units “can provide a wide range of products and services suited for servicing the needs of the market,” which would depend on the business model and strategies of the banks as defined by their respective board of directors.
The banking products offered in branch-lite units would exclude those designed for sophisticated clients with high risk tolerance, the BSP added.
“The new guidelines also rationalize the classifications of banking offices such as extension offices, other banking offices and microbanking offices under the branch-lite framework,” it said.
“This reform addresses the current situation where there are over 570 cities and municipalities with no banking presence. With simplified and more flexible provisions, banks will be better able to expand in areas which are unbanked and underserved,” according to the BSP.
In a speech last month, Chuchi Fonacier, BSP deputy governor, said the branch-lite concept formed part of the BSP’s liberalization initiatives “to be more responsive to the changing preferences of financial consumers and market conditions.” —BEN O. DE VERA
