Banks secure BSP approval to open 162 Metro Manila branches
The Bangko Sentral ng Pilipinas has approved the proposal of several banks to open 162 branches in key Metro Manila cities.
The central bank used to limit the setting up of bank branches in key urban cities, believing that there were enough establishments that could provide banking services in those areas.
But earlier this year, the BSP issued a circular lifting the restrictions on branching.
BSP Governor Amando Tetangco Jr. said the move to liberalize bank branching was in response to the growing need for additional banking services driven by an expanding economy.
Development Bank of the Philippines, Land Bank of the Philippines, Security Bank, Eastwest Bank, Bank of Commerce, Planters Bank and Philippine Business Bank may now open a total of 162 branches in the cities of Makati, Mandaluyong, Manila, Parañaque, Pasay, Pasig, Quezon and San Juan.
“Branching liberalization underscores the value of a competitive market environment in promoting quality financial services,” the BSP said in a statement, citing the rise in Metro Manila business activities.
“By opening these eight cities … banks that are not yet deeply entrenched in these areas are provided the opportunity to have a physical base to deliver services to the public.”
The central bank also said the lifting of the restriction, contained in BSP Circular 728, would benefit consumers and businesses in the cities in terms of more competitive bank interest rates and easier access to services.
The liberalization of bank branches comes in two phases. Under the first phase, universal and commercial banks that had less than 200 branches in Metro Manila as of end-2010 would be allowed to apply for additional branches.
Under the second phase, which will take effect on July 2, 2014, all other universal and commercial banks will be allowed to put up branches in key cities.
Moreover, in a separate circular, the BSP has allowed rural banks to put up branches in Metro Manila on condition that the satellite offices must only provide services to microenterprises.
The BSP said encouraging banks to provide microfinance services would accelerate growth of the overall economy.
The central bank said encouraging rural banks to put up branches in Metro Manila would help address the need of micro-enterprises for more access to banking services.—Michelle V. Remo
