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5 New Branches Opened in 2012 PDF Print E-mail
Written by Reynante Rivera   

In its goal to expand reach of financial inclusion, GM Bank of Luzon, Inc. opened 5 new branches in 2012 in communities underserved by financial institutions.


The first branch was opened in May 2012 at the capital of the Province of Zambales, a first-class municipality with 14 barangays and a population of 51,033 people. The Municipality of Iba is the second largest provincial capital in Central Luzon next to Tarlac City in terms of land area and is foreseen to become a component capital city of Zambales in 2014.


The following month, a branch was opened in another first-class municipality of La Union, Bacnotan. Its 47 barangays have a population of 38,743 people in 7,183 households. The Ilocano speaking community derives economic resources from activities in farming, fishing, bee-keeping, pebble extraction, tourism and Portland cement manufacture.


In September 2012, another branch in La Union was opened in the Municipality of Bauang. It is a first-class partially urbanized municipality composed of 39 barangays with a population of 72,391 people in 15,669 households. The municipality is famous for its festivals like Baggak Summer Festival every first week of April and the Panagkakararua Festival on October 31.


Bugallon Municipality in the Province of Pangasinan is the site for the fourth branch opened in 2012 (November). It is a second-class municipality with 24 barangays inhabited by 64,243 people. Economic activities include tourism, farming, vinegar and wine making.


The 42nd full-service branch and 45th banking office was opened in November 2012 at Castillejos, Zambales. It is a developing municipality subdivided into 14 barangays with a population of 42,910 people in 7,238 households.

 
GM Bank of Luzon raising capital, eyeing 10 new branches in 2011 PDF Print E-mail
Tuesday, 15 March 2011 00:03

(The Philippine Star) Updated March 08, 2011 12:00 AM

 

 

MANILA, Philippines - GM Bank of Luzon Inc., the newly consolidated rural bank based in Nueva Ecija, is still in the expansion mode.

 

And it is raising P40 million worth of Tier 1 capital to feed its appetite. In 2009, it raised P75 million in Tier 2 capital.

At the close of 2010, the Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission (SEC) gave then GM Bank Inc. the nod to consolidate with Bangko Luzon to form GM Bank of Luzon Inc.

The consolidation process resulted in a larger rural bank with a combined branch network of 35, among the largest in Region III.

 

“We will complete five branches by July this year, and immediately apply for five more,”

Tomas S. Gomez IV, president and chief executive officer of GM Bank of Luzon, said.

 

That could mean a complement of 45 branches by end-2011.

Of the five new branches to be established in the first semester of 2011, three will be located in Pangasinan and two in Nueva Vizcaya. It already operates branches in Tarlac, Pampanga, Bulacan and Nueva Ecija.

Gomez likewise revealed that they are presently operating three micro banking offices (MBOs) or other banking offices (OBOs). One located in Sta. Ana, Pampanga and two in Nueva Ecija.

A regular OBO undertakes purely non-transactional banking related activities such as marketing, customer care services, acceptance of loan applications, among others.

 

 

A microfinance OBO (MF-OBO) or MBO provides a wide range of transactional activities, which reflect the particular needs of the un-served and underserved market, particularly microfinance clients, overseas Filipinos and their beneficiaries.

 

Gomez said that OBOs not only expands microfinance operations, but also tests the market if it can absorb a full bank complement.

“The primary emphasis is still microfinance. It allows us to put extra emphasis on the savings side of microfinance,” he added.

 

The country’s rural banking sector is still in the long-drawn process of consolidating as the challenges of the financial sector increases both in terms of market demand as well as regulatory requirements.

Thirty-seven percent of the country is without a financial institution. Others are underserved or incapable to fulfilling the deposit or lending needs of the population.

Likewise, the country’s banking system is pressured by tighter regulatory environment to stay healthy forcing out the incapable institutions.

The former GM Bank is in fact a product of the consolidation of three Nueva Ecija-based banks, Community Rural Bank Inc., the Muñoz Rural Bank Inc., and the SME Bank.

 

“We are still looking for opportunities (to acquire or consolidate) while the consolidation process in the sector is still ongoing,” the GM Bank of Luzon chief executive said.

 

Source: philstar.com

Last Updated on Tuesday, 15 March 2011 03:23
 
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