Foreign bank keen on opening PH office
Credit to Author: MAYVELIN U. CARABALLO, TMT| Date: Mon, 18 Feb 2019 16:23:47 +0000
A Europe-based bank has indicated interest in setting up shop in the Philippines, a senior Bangko Sentral ng Pilipinas (BSP) official said on Monday.
“Someone [from the bank] has approached me and said they are interested to apply for a license,” central bank Deputy Governor Chuchi Fonacier told reporters in an interview.
Fonacier did not identify the bank but stressed that it was based in Europe.
“The person did not specifically said whether they want to put up a branch or subsidiary but they expressed interest to apply,” she added.
Approval of Republic Act 10641, or the Act Allowing the Full Entry of Foreign Banks in the Philippines, in July 2014 paved the way for the entry of new players.
The law lifted the prevailing equity limit of 60 percent for foreign partners and allowed 100 percent ownership of the voting shares in an existing domestic bank.
Foreign banks can operate in the Philippines as a branch or a wholly-owned subsidiary, with the BSP taking into consideration strategic relationships and reciprocity rights in accepting applications.
A separate assessment by regulators in the banks’ respective countries of origin is also a requirement.
The BSP’s policymaking Monetary Board has to date approved the local operations of 12 foreign banks, five of which are from Taiwan: Chang Hwa Bank Commercial Bank Ltd., Cathay United Bank, Yuanta Commercial Bank, First Commercial Bank and Hua Nan Commercial Bank Ltd.
The others are South Korea’s Woori Bank, Industrial Bank of Korea and Shinhan Bank; Singapore’s United Overseas Bank Ltd.; Japan’s Sumitomo Mitsui Banking Corp.; Malaysia’s CIMB Bank Berhad; and China’s Industrial and Commercial Bank of China.
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