Taiwan’s Hua Nan Bank is the newest foreign bank to enter the Philippines, the Bangko Sentral ng Pilipinas (BSP) said Wednesday.
BSP Deputy Governor Nestor A. Espenilla Jr. confirmed that the Taiwanese lender was given the go-ahead by the Monetary Board last month to set up shop in the country.
Hua Nan Bank is the fourth Taiwanese bank and the ninth foreign lender that entered the Philippine market under Republic Act No. 10641.
The law signed by former President Aquino in 2014 allowed the full entry of foreign banks.
According to Taiwanese media reports, Hua Nan Bank’s Manila branch will be its 14th overseas.
“The Manila branch will not only serve Taiwanese businesses in the Philippines, but will also tap local customers, based on its past experience in helping small- and medium-sized businesses develop,” The China Post quoted Hua Nan Bank as saying.
The BSP earlier allowed the following foreign lenders, all Asian banks, to operate in the country: Japan’s Sumitomo Mitsui Banking Corp.; Singapore’s United Overseas Bank Ltd.; South Korea’s Shinhan Bank, Industrial Bank of Korea, and Woori Bank; as well as Taiwan’s Cathay United Bank, First Commercial Bank, and Yuanta Commercial Bank Co.
Espenilla said at least two more Asian banks had been “preparing documents”—an indication that they were also serious to enter the Philippines as well.
The two other lenders are expected to secure the BSP’s approval within the year, he said.