Number of banks down to 746

Number of banks down to 746

By Lawrence Agcaoili (The Philippine Star) Updated July 18, 2011 12:00 AM Comments (0) 

MANILA, Philippines - The total number of banks operating in the Philippines declined in the first quarter of the year as the Bangko Sentral ng Pilipinas (BSP) stepped up its campaign against problematic banks while major players in the banking industry continued to consolidate.

Data released by the central bank showed that the number of banks stood at 746 in the first quarter of the year or 12 banks fewer than the 758 as of end-December last year. The number of banks was also 33 less than the 779 banks that operated in the same quarter last year.

BSP Deputy Governor Nestor Espenilla Jr. said in an interview with reporters that the decline in the number of banks in the first quarter of the year could be attributed to the exit of weak players in the banking system as well as the continued mergers and consolidation of major players.

“Yes we regularly close banks that do not perform based on standards,” Espenilla stressed.

Data showed that the number of universal and commercial banks was steady at 38 while the number of thrift banks was also unchanged at 73.

However, the number of rural banks decreased to 635 in the first three months of the year compared to 667 in the same period last year and 647 as of end-December due primarily to the closure of weaker banks.

The banks closed down by the BSP from January to March this year was led by the Aguirre-owned Banco Filipino Savings and Mortgage Bank that was placed under the receivership of the state-run Philippine Deposit Insurance Corp. (PDIC) last March 17.

Other banks closed by the BSP and taken over by PDIC in the first quarter of the year include Rural Bank of Tampakan (South Cotabato) Inc., Rural Bank of Agno (Pangasinan) Inc., Growers Rural Bank Inc., Rural Bank of Manjuyod (Negros Oriental) Inc., GMA Rural Bank of Cavite Inc., Rural Bank of Bingawan (Iloilo) Inc., Rural Bank of Mapandan (Pangasinan) Inc., Rural Bank of Norzagaray (Bulacan) Inc., Rural Bank of Zapote (Las Piñas City) Inc., Ibalon Rural Bank (Tabaco, Albay) Inc., and Rural Bank of Baler (Aurora) Inc.
 
The BSP reported that the number of branches of universal and commercial banks, thrift banks, and rural banks increased by 240 to 8,124 in the first quarter of the year from 7,884 in the same period in last year.

“What is important is that customers are served,” Espenilla added.

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