The central bank's policy-making Monetary Board has approved a proposal to lift the moratorium on new bank branches provided that these will cater mainly to small- and medium-sized enterprises (SMEs).
Alberto V. Reyes, Bangko Sentral ng Pilipinas deputy governor for supervision and examination, said: "The moratorium on branches will be lifted provided the branches to be established are SME-oriented." Adding that the Monetary Board has approved the proposal, along with other measures to support SMEs.
He said this is expected to improve SMEs' contribution to the economy by strengthening them through greater funding access.
Nestor A. Espenilla, Jr., the central bank's assistant governor, said the financial regulator will issue a circular detailing the requirements for banks interested in setting up SME-oriented branches.
