The Bangko Sentral ng Pilipinas (BSP) has approved six applications for regular bank branches in the second quarter compared to five in the first three months of 2024.
But, unlike in the previous quarter with 23 branch-lite units (BLUs) approved, the BSP gave the go signal to open more or 42 BLUs in the second quarter.
Last year, the BSP approved only four regular bank branches and 32 BLU applications in the second quarter.
Meanwhile, for the months of April to June this year, the BSP approved the application of big banks BDO Unibank Inc., Security Bank Corp. and state-owned Development Bank of the Philippines to open regular branches in different parts of the country including in Ilocos Sur, Bukidnon and Bacolod City.
Based on the memo signed by BSP Deputy Governor Chuchi G. Fonacier on Dec. 4, the BSP also approved the application of thrift bank BPI Direct BanKo for 40 BLUs, one request from the Cooperative Bank of Cebu and another one from DBP.
The BSP has been favoring more of the streamlined BLUs with limited banking services amid the industry’s changing landscape.
Regular branches are full-sized banks, mostly traditional brick-and-mortar branches or contained within a building and offers full banking services.
The difference between regular branches and BLUs is that the latter have limited banking activities but could provide a wide range of products and services suited for servicing the needs of the market except for sophisticated clients with aggressive risk tolerance.
In the second quarter, there were 10 regular bank branches that were opened by commercial and universal, thrift and rural banks. Another 22 BLUs also started their business during the period.
Big banks with new regular branches in the second quarter were BDO, DBP, Security Bank and Maybank Philippines Inc.
There were five thrift banks, on the other hand, that opened BLUs, namely: 1st Valley Bank Inc. A Development Bank; BPI Direct BanKo; CARD SME Bank; China Savings Bank; and Producers Savings Bank Corp.
As of October this year, the BSP is supervising 44 big banks, 41 thrift banks, 365 rural banks and 21 cooperative banks.
BSP data showed there are 12,942 bank branches in the country, of which 7,139 are operated by the big banks; 2,592 by thrift banks; and 3,211 by rural and cooperative banks.
Since the pandemic and the rise of digital banking including e-wallet and other online-only financial transactions, the banking industry has reorganized, streamlined and consolidated their traditional brick-and-mortar branches, and opted to digitalized more of its products and services.
Based on the latest central bank report on the domestic financial system, for the first semester this year the banking sector accounted for 83.4 percent of the financial system’s total resources. This has allowed banks to support the growth of the domestic economy.