iBank, Asia United Bank to expand branch network

Two medium-sized commercial banks have applied with the Bangko Sentral ng Pilipinas (BSP) to expand their branch networks, a ranking BSP official said yesterday.

BSP Deputy Governor Nestor Espenilla said that the International Exchange Bank (iBank) and Asia United Bank have submitted their respective applications to avail of the bank branching privileges that are extended to well-capitalized banks.

Espenilla said a number of local banks have expressed interest to add more branches even if the central monetary authority has yet to come out with the implementing rules and regulations on the newly-approved lifting of the bank branching moratorium.

"There are a lot medium-sized banks that are well-capitalized. They are qualified to expand their branches," he said.

The Monetary Board, the policy-making body of the BSP, has approved a gradual liberalization of bank branching policy.

The new regulations are aimed primarily at enhancing competition and the accessibility of efficient banking services in underserved areas.

Under the new guidelines, banks that meet the qualification requirements may now establish branches anywhere in the Philippines except in the cities of Makati, Mandaluyong, Manila, Parañaque, Pasay, Pasig and Quezon, and the Municipality of San Juan, in Metro Manila which will remain covered by branch moratorium for now.

BSP studies indicated that these areas are presently adequately served by existing banking offices. Nevertheless, this still represents a significant liberalization since the rest of NCR will now be open for branching as well as all of Metro Cebu and Metro Davao.

Morever, branches of microfinance-oriented banks, microfinance-oriented branches of regular banks and branches that will cater primarily to the credit needs of duly-registered Barangay Micro Business Enterprises (BMBEs) may be established anywhere, even in the still closed areas, subject to compliance with a minimum capital requirement of P325 million in the case of thrift banks and rural banks.