MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has received over 500 applications from banks requesting new licenses to open branches in the eight restricted areas of Metro Manila that the BSP has opened up after a 15-year moratorium on bank branching.

The number of branch applications was staggering and not only from the second-tier banks but also from thrift banks, BSP sources said.

Documents submitted to the Monetary Board show that the central bank has studied the maximum number of branches that can be allowed to be established in the eight restricted areas by each of the qualified banks.

Based on careful assessment, the BSP can allow a minimum of 60 branches that a qualified bank can open in any of the eight restricted areas of Makati, Mandaluyong, Manila, Paranaque, Pasay, Pasig, San Juan and Quezon City.

Last month, the BSP announced that it has approved the application of five second tier banks and two government banks to open a combined 162 branches in the restricted areas.

East West Banking Corp. was granted new authority to open 75 branches in the restricted areas while Security Bank Corp. was given 50. Bank of Commerce also received approval to open three branches in any of the previously barred cities. The other 34 branches were given to Planters Bank, Philippine Business Bank and the two GFIs, Land Bank of the Philippines and Development Bank of the Philippines.

Presently, according to BSP data, the Gotianun-owned East West Bank operates 46 branches within the eight restricted areas while Security Bank has more at 58. The San Miguel Corp. bank BoC, which will have new Malaysian owners soon, currently has 47 branches established in the eight formerly barred cities.

Landbank, on other hand, has 44 of its 286 branches located in the eight restricted areas while DBP only has four branches in out of its 76 branches across the Philippines.

The data showed no listed branches within the restricted areas under Planters Bank and Philippine Business Bank.

In a letter to BSP before the bank branching policy liberalization was approved last year, East West Bank President and CEO Antonio Moncupa Jr. said that despite investing over P4 billion since 2009 in order to be more competitive, his bank was still not being sufficiently represented in many of the eight cities that were closed to banks.

It was East West Bank, among other second tier banks, that requested the BSP to allow branches in these cities to lessen the disadvantages that face mid-sized banks due to their limited branch network.

BSP Circular 728 which liberalized bank branching was approved last June. BSP said that by opening these eight cities to branches, banks which are not yet “deeply entrenched in these areas are provided the opportunity to have a physical base to deliver banking services to the public.”

The central bank will completely lift the bank branching restriction by mid-2014, ending a 15-year moratorium on the establishment of new banks/branches.

This will be done in two phases. Initially the Monetary Board has approved the partial lifting of the branching restriction in the cities of Makati, Mandaluyong, Manila, Paranaque, Pasay, Pasig, San Juan and Quezon City.