THE PHILIPPINE banking system continued to expand during the second quarter as lenders opened more branches across the country with a focus on the provinces, data from the Bangko Sentral ng Pilipinas (BSP) showed.
The local banking sector widened its reach as lenders grew their branch networks to reach 10,318 as of end-June, up by 4.3% from the 9,890 offices tallied during the first six months of 2015. This came despite the closure of 20 banks, with the number of operating lenders down to 618 as of the first half.
Broken down, the number of universal and commercial banks grew to 41 from 36 during the previous year, accompanied by an increase in branches to 6,092 from 5,910, data showed.
Thrift banks saw some closures among their ranks, with their number down to 64 players from 70 previously. Still, the existing retail lenders expanded their branch network to reach 2,060, higher than the 1,943 tallied in June 2015.
Rural banks also widened their presence as its offices rose to 2,042, but the number of players slipped to 484 from 503 the year prior.
As regulator of the local banking system, the BSP can order the closure of problem banks especially if found unviable to sustain its operations. The central bank ordered 14 banks closed last year, and another 15 as of end-August 2016.
Meanwhile, the number of cooperative banks stood steady at 29, with these lenders having added nine new branches as of June to reach 124.
Offshore banking units run by local lenders also slipped to three from four.
The banks focused on the provinces as they pursued expansion plans.
Based on BSP data, the number of bank branches rose across 16 regions, stood steady in Metro Manila, but slipped by two in the Autonomous Region in Muslim Mindanao.
A parallel expansion was seen among investment houses and financing companies as they grew to 81 branches from 53 previously, even as the number of firms stood steady at 10.
In contrast, the non-bank sector shrank from a year ago, although continued to be the most extensive in terms of national reach with a tally of 5,570 entities with 10,961 branches or offices.
Pawnshops enjoyed the biggest branch network as of June, with 5,432 firms operating 10,805 outlets across the country. This, however, is fewer than the 5,807 pawnshops servicing 11,533 branches tallied in June 2015.
Non-stock savings and loans associations stood steady from a year ago, little changed with 69 groups running 131 branches, according to BSP data.
Overall, the total number of entities supervised by the BSP stood at 27,561, a slight drop from the 28,222 tallied during the first six months of 2015. — Melissa Luz T. Lopez
