The Philippine central bank's monetary board amended the guidelines on the establishment of branches to offer banks more flexibility on their expansion plans.

The new regulation removed the use of theoretical capital and the combined capital requirement tied to the geographic location for the branch applications, according to a Dec. 9 release.

The monetary board also reiterated the general thrust of allowing banks to establish branches anywhere in the Philippines, in line with efforts to liberalize the country's banking system and to gradually remove the suspension on the establishment of new domestic banks.

Smaller banks may now establish branches in the country's capital city, subject to higher capitalization and special licensing fee.