BSP trims list of big banks from 45 to 38
The country’s list of universal and commercial banks is now at 38 from 45, and according to a central bank official, an explanation is forthcoming as to why the list of big banks has been revised.
The Bangko Sentral ng Pilipinas (BSP) has been maintaining the list of 45 big banks for more than five years. In fact as of end-March 2023, it was still 45.
However as of end-June, there were only 38 listed big banks based on assets, capital, deposits and loans.
Six foreign banks and one local bank were taken out of the big banks’ list.
The six foreign banks are: Bank of China (Hong Kong) Ltd. Manila Branch; Bank of America N.A.; Industrial and Commercial Bank of China Ltd.; Mega International Commercial Bank Co. Ltd.; Industrial Bank of Korea Manila Branch; and CIMB Bank Philippines Inc.
The only local bank removed from the big banks’ list is the country’s first and lone Islamic bank, Al Amanah Islamic Investment Bank of the Philippines.
BSP Deputy Governor Chuchi G. Fonacier said that there are still 45 universal and commercial banks, of which 22 are universal banks and 23 are commercial banks.
Fonacier, who is head of the BSP’s Financial Supervision Sector (FSS), told Manila Bulletin that an explanation as to what happened to the seven banks that were removed from the list will be released as soon as possible.
She did not disclose as yet the reasons for why the list was trimmed as this was still being coordinated with other committees within the BSP.
Meanwhile, the state-owned Al Amanah is a subsidiary of the Development Bank of the Philippines (DBP). It was created by a presidential decree in 1973.
DBP President and CEO Michael O. De Jesus said Al Amanah is still a unit of the bank.
“As of now, there are no changes in Al Amanah set up. (It’s a) status quo,” he told Manila Bulletin.
He added that the Islamic bank “is in a separate classification with BSP” and that based on its charter, “it has the power of a universal bank.”
The BSP has been known to be aggressive in promoting Islamic finance in the country after a 2019 law was implemented expanding Islamic banking in the country.
Last August, the BSP issued its first Islamic banking unit (IBU) license to an unnamed conventional or non-Muslim bank.
BSP Deputy Governor Francisco G. Dakila Jr. said that there are at least five foreign banks that are currently exploring the establishment of either a stand-alone Islamic bank or an IBU.
Before the first IBU license, the Philippines only has Al Amanah.
The Islamic banking law or Republic Act No. 11439 has placed the BSP as lead agency in conducting various initiatives with the government in promoting Islamic banking and finance.