BSP Deputy Governor Nestor Espenilla Jr. said in an interview with reporters that there is a need to make banking and financial services accessible throughout the Philippines.
“The distribution seems to be heavily concentrated in NCR, then Calabarzon, Region III, and then there are pockets in Cebu and in other cities,” Espenilla stressed.
He pointed out that the concentration in these areas show that banks follow centers of economic activity and population.
“In an archipelago like ours, there are very well defined centers of economic gravity and banks are basically profit-driven enterprise so of course you go where the business is,” he added.
He pointed out that the density of banking offices to population in the Autonomous Region in Muslim Mindanao (ARMM) is one banking office for 40,000 person per area.
“We have totally lifted banking restrictions outside NCR. We are really sending a signal to put branches outside so that you can better service the public,” Espenilla said.
Latest data showed that the number of banking institutions (head offices) fell further to 797 as of end-September 2009 from the year-ago level of 835, indicating the continued consolidation of banks as well as the exit of weaker players in the banking system.
By banking classification, banks (head offices) consisted of 38 universal and commercial banks, 73 thrift banks, and 686 rural banks.
Meanwhile, the operating network including branches of the banking system increased to 7,914 from 7,811 reflecting mainly the increase in commercial and rural banks’ branches.
Source: The Philippine Star
