BSP: Number of banks declines in 1st 9 mos.

The number of banks operating in the Philippines dropped due to consolidation and closure of some financial institutions, the central bank said Wednesday. The Bangko Sentral ng Pilipinas (BSP) said the number of banks as of September last year declined to 764, from 797 registered in the same month in 2009. Central bank data showed that the number of universal and commercial banks and thrift banks remained unchanged at 38 and 73, respectively. The number of rural banks totaled 653 in January-September of last year, down from the 686 recorded in the same period in 2009, the BSP said. The BSP added that branches of universal and commercial banks, thrift banks, and rural banks around the country rose to 8,740 during the first nine months of last year from 8,564 in the same period in 2009. According to regulators who asked not to be named, many rural banks often become victims of mismanagement wither by shareholders or the professional managers that run them. BSP Deputy Gov. Nestor Espenilla had earlier said most rural banks are family-owned and this often proves more of a curse than a blessing. "Most rural banks are treated by their owners as personal piggy banks," he said. — JEOMG, GMANews.TV