The number of foreign banks with full operations in the country may reach at least 15 this year amid rising interest in the growing domestic market, Bangko Sentral ng Pilipinas Governor Amando M. Tetangco Jr. said.
“We are happy to report that nine [foreign] banks have entered the Philippine banking industry thus far, with six more banks expressing interest,” Tetangco said in a speech during the annual reception for the banking community Tuesday night, as he noted Congress’ support for the eventual passage into law of Republic Act (RA) No. 10641.
Signed in 2014 by former President Aquino, RA 10641 allowed the full entry of foreign banks.
So far, the BSP allowed the following Asian banks to fully 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, Hua Nan Bank and Yuanta Commercial Bank Co. Ltd.
BSP Deputy Governor Nestor A. Espenilla Jr. later told reporters that while the six foreign banks mentioned by Tetangco had yet to formally file their respective applications, they were deemed serious in considering establishing operations in the country.
Espenilla said all six banks could apply for entry this year.
The six lenders were from countries in regions near the Philippines, although one bank came from a region outside the East and Southeast Asian regions that were home to the nine initial entrants, Espenilla said.
Tetangco said RA 10641 and RA 10574, which allowed the infusion of foreign equity in the capital of rural banks, helped the country “reposition to better manage cross-border commerce” after it achieved investment grade credit ratings.