MANILA, 27 June 2017 - Financial System in the Philippines is expected to expand despite the closure of three banks during the first quarter of 2017.

Closure of Banks

From the operational 602 banks in the Philippines as of December 2016, three banks (1 thrift bank, 1 rural bank, and 1 cooperative bank) have closed its business operations as of March 2017.

Contrary to belief that this may affect the Philippine financial system, there was a growth in the remaining lenders' branch from 10,576 to 10,769 outlets. The universal and commercial banks also grew their respective branch network from 49 to 6,244; thrift banks from 36 to 2,152 branches and rural banks from 22 to 2,162 branches.

Although decreased from branch network of cooperatives have been monitored (from 125 to 121 branches), overall there are 6,151 banks and non-bank entities offering financial services across 22,288 branches and offices across the country as of the end of March such as pawnshops, non-stock saving and loan associations and non-bank firms with quasi-banking functions such as investment houses and financing companies.