THE local banks’ physical network expanded, albeit at a slower rate, in 2020 amid the global health crisis.
Data from the Bangko Sentral ng Pilipinas (BSP) showed that the total number of bank branches hit 12,985 in end-December 2020, up 0.9 percent from the 12,870 bank branches seen in the previous year.
While banks were still able to add 115 branches for the year, the expansion was slower compared to the 4.24-percent growth of bank branches seen in 2019, where local lenders added 547 branches in a year’s time.
Growth in bank branches in 2020 was primarily driven by universal banks, which expanded their physical network by 1.5 percent or by 96 branches in 2020. This is followed by the expansion of rural and cooperative banks, which grew by 0.51 percent or 16 branches for the year.
Branches of both commercial banks and cooperative banks were largely flat during the year, with commercial banks adding two branches from 573 to 575 for 2020 and cooperative banks adding six branches from 161 to 167 branches.
The number of thrift banks, on the other hand, contracted during the year by 0.19 percent from 2,683 in 2019 to 2,678 branches in 2020.
BSP Governor Benjamin Diokno has long expressed support for the banking system’s resilience in the face of the global health crisis.
In one of his recent speaking engagements, Diokno said that while the full impact of the pandemic is still unfolding, the good news is that the Philippine banking system is expected to withstand the impact of the pandemic.
“The financial system is in a strong position to both weather the significant economic effect caused by the Covid-19 pandemic and support the country’s economic recovery. The domestic banking system is expected to remain relatively stable in the next two years,” Diokno said.
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