MANILA, Philippines - The number of banks declined amid the consolidation of smaller players but the physical network of banking industry increased in the first half, the Bangko Sentral ng Pilipinas (BSP) reported yesterday.
According to the central bank, the number of universal, commercial, thrift as well as rural and cooperative banks reached 638 from January to June, 26 lower than the 664 banks operating in the same period last year.
The number of universal and commercial banks was unchanged at 34 while that of thrift banks stood at 70.
The number of rural and cooperative banks was reduced by 26 to 532 in the first half of the year from 558 in the same period last year.
The BSP traced the decline in the number of rural and cooperative banks to the consolidation of players as well as the exit of weaker players in the banking system.
Universal and commercial banks continued to expand their operations, opening 322 branches to 5,418 in the first half from 5,096 in the same period last year, while thrift bank inaugurated 135 new branches bringing the total to 1,943 from 1,808.
As of the first quarter, BDO Unibank emerged as the number one bank in terms of assets with P1.81 trillion followed by Metropolitan Bank & Trust Co. with P1.35 trillion, Bank of the Philippine Islands with P1.17 trillion, Land Bank of the Philippines with P1.05 trillion, Philippine National Bank with P576.4 billion, Development Bank of the Philippines with P463.5 billion, and Security Bank Corp. with P416.8 billion.
The thrift bank sector is led by BPI Family Savings Bank with P229.49 billion worth of assets followed by Philippine Savings Bank with P138.6 billion, RCBC Savings Bank with P79.79 billion, Philippine Business Bank with P58.3 billion, City Savings Bank with P57.77 billion, and Planters Development Bank with P46.12 billion.
The BSP has offered more incentives as well as financial package to encourage mergers and consolidations among rural banks through the Consolidation Program for Rural Banks (CPRB).
The BSP, the state-run Philippine Deposit Insurance Corp. (PDIC), and Landbank conceptualized the program wherein the Countryside Financial Institutions Enhancement Program (CFIEP) has set aside P25 million to support the financial advisory, business process improvement, and capacity-building support services.
The CPRB is different from the Strengthening Program for Rural Banks (SPRB) Plus that is aimed to strengthen the banking system and to minimize bank closures.
Last December, the BSP and PDIC approved the extension of the SPRB Plus to end December this year from end December last year with certain operational refinements after banking industry associations pushed for the program’s extension.
The BSP and PDIC have approved seven merger/consolidation applications involving 14 banks as of end December last year.