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Total number of banks in the Philippines declines in 2015

Unknown 9:14 PM 2015 , banks’ , declines , number , Philippines' , Total

<ul><li style="text-align: justify;">The number of banks in the country fell in 2015 as weaker banks exited the banking system</li> <li style="text-align: justify;">However, the total number of bank branches and offices actually increased</li> <li style="text-align: justify;">The country now allows foreign banks to operate while encouraging rural banks to merge</li> </ul>Data from the Bangko Sentral ng Pilipinas (BSP) reveals that there were fewer banks operating in the Philippines by the end of 2015, as smaller, non-performing rural banks have left the market. A total of 16 banks exited the country’s banking system and thus brought the number of banks in the country to 632 by the end of 2015, compared to the 648 recorded in the same period. However, the total number of bigger, universal and commercial banks rose from 36 in 2014 to 40 in 2015. This includes 21 private domestic banks, 12 foreign bank branches, 3 government banks, and 6 foreign bank subsidiaries. “This indicates the continued consolidation of banks as well as the exit of weaker players in the banking system,” the BSP explained to <a href="http://www.rappler.com/business/industries/209-banking-and-financial-services/127361-number-philippine-banks-2015-bsp?utm_content=buffer38092&utm_medium=social&utm_source=facebook.com&utm_campaign=buffer">Rappler</a> in a statement. The increase in the number of big commercial banks can also be attributed to the establishment of new foreign banks in the country, after President Benigno Aquino III signed Republic Act 10641 which allows the full entry of foreign banks in the Philippines, amending Republic Act 7721 which had previously set the limit of foreign banks operating in the country at 10. The BSP has welcomed six more foreign banks to the country, including Sumitomo Mitsui of Japan, Cathay United Bank of Taiwan, the Industrial Bank of Korea, Shinhan Bank based in Seoul, Yuanta Bank of Taiwan, and United Overseas Bank Limited (UOB) of Singapore. Meanwhile, the total number of thrift banks rose from 68 in 2014 to 69 in 2015. On the other hand, the number of rural and cooperative banks fell from 543 to 524. In 2015, a total of 14 rural banks were ordered completely closed by the BSP, which includes: Community Bank Incorporated (Rural Bank of San Alfonso), Community Rural Bank of Magsaysay (Davao del Sur) Incorporated, Rural Bank of Labrador (Pangasinan) Incorporated, Rural Bank of Magsingal (Ilocos Sur) Incorporated, Rural Bank of Pres. Roxas (North Cotabato) Incorporated, Rural Bank of Sta. Magdalena (Sorsogon) Incorporated, Siargao Bank (A Rural Bank) Incorporated, Surigaonon Rural Banking Corporation, Farmer’s Rural Bank Incorporated in Batangas, Xavier-Punla Rural Bank Incorporated, Rural Bank of Buguias, Rural Bank of Calasiao, the Rural Bank of Caba (La Union), and the Peñafrancia Rural Bank of Calabanga (Camarines Sur) Incorporated. However, while some banks were ordered closed, the number of branches and offices by those banks that remained in operation, actually increased from 10,361 in 2014 to 10, 756 in 2015. The BSP, has also encouraged the mergers and consolidations among rural banks under the Consolidated Program for Rural Banks (CPRB), in partnership with the Philippine Deposit Insurance Corporation (PDIC) and the Land Bank of the Philippines <a href="http://kickerdaily.com/total-number-of-banks-philippines-declines-in-2015/" rel="nofollow">Kicker Daily News</a>

The number of banks in the country fell in 2015 as weaker banks exited the banking system However, the total number of bank branches and off...