Bangko Sentral ng Pilipinas (BSP), the central bank of the Republic of the Philippines, reportedly is proposing to cut the fees for opening new bank branches and to lift restrictions on the opening of bank branches in the eight “restricted areas” of metro Manila. The fee per branch opened would be reduced from PHP 200,000 (USD 4,700) to PHP 100,000 (USD 2,300) for commercial and universal banks and their affiliated thrift banks, while the fee for non-affiliated thrift banks would be reduced from PHP 100,000 (USD 2,300) to PHP 50,000 (USD 1,200). Currently banks can only open two branches in each city in the region.
Separately, BSP is earmarking branch licensing fees collected in the restricted area to pay for a “Financial Inclusion Trust Fund” to finance BSP’s financial inclusion programs. In a statement, BSP Governor Amando M Tetangco Jr said, “We have imposed a special licensing fee for the opened up restricted areas to continue to promote balanced delivery of financial services nation-wide.”
By Carol Kim, Research Associate
About the Bangko Sentral ng Pilipinas (BSP): BSP is the central bank of the Republic of the Philippines. Established in July 1993 under the provisions of the 1987 Philippine Constitution and the New Central Bank Act of 1993, BSP took over from the Central Bank of Philippines as the country’s central monetary authority. Headquartered in Manila, BSP has three regional offices performing cash operations and eighteen branch offices. BSP participates in advocacy programs concerning microfinance, financial education and consumer protection.
Sources and Additional Resources:
Manila Bulletin Publishing Corporation: “BSP reduces branch processing fees”, June 2011, http://www.mb.com.ph/articles/322373/bsp-reduces-branch-processing-fees
Manila Bulletin Publishing Corporation: “BSP eases bank branching restriction”, June 2011, http://www.mb.com.ph/articles/321001/bsp-eases-bank-branching-restriction
MicroCapital.org: “MICROCAPITAL BRIEF: Bangko Sentral ng Pilipinas (BSP) Places New Restrictions on Lending to Related Parties by “Microfinance-Oriented Banks” in the Philippines”, June 24, 2011, https://www.microcapital.org/microcapital-brief-bangko-sentral-ng-pilipinas-bsp-places-new-restrictions-on-lending-to-related-parties-by-%E2%80%9Cmicrofinance-oriented-banks%E2%80%9D-in-the-philippines/
MicroCapital.org: “MICROCAPITAL BRIEF: Bangko Sentral ng Pilipinas (BSP) Expands Eligibility for Microfinance Services in the Philippines”, June 6, 2011, https://www.microcapital.org/microcapital-brief-bangko-sentral-ng-pilipinas-bsp-expands-eligibility-for-microfinance-services-in-the-philippines/
MicroCapital’s Universe Profile: Bangko Sentral ng Pilipinas (BSP), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bangko+Sentral+ng+Pilipinas+%28BSP%29
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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