Malaysia’s CIMB to enter Philippine banking industry

Malaysia’s CIMB Group is expected to secure the Bangko Sentral ng Pilipinas’ (BSP) approval to start banking operations here before the end of the year.

Highly placed BSP sources identified CIMB as the listed Malaysian bank reportedly eyeing to establish presence in the Philippines. CIMB is Malaysia’s second largest bank in terms of assets.

Last January, CIMB group chief executive Tengku Datuk Seri Zafrul Aziz was quoted by Malaysian media as saying they wanted to start Philippine operations by the third quarter.

The Malaysian banking giant was also reported to have already applied for an accreditation with the BSP, as the group wanted to be present in all 10 Asean member-countries.

In 2016, CIMB secured a full banking license to operate in Vietnam.

According to reports, the group, which has more than 1,000 branches, is said to be the biggest retail banking network in the region.

Last month, BSP Deputy Governor Chuchi G. Fonacier said that of the eight foreign banks that have expressed interest to do business here, two were from Asean, and one of them has already submitted the requirements.

Fonacier had said the application of the Malaysian lender, which she declined to identify, was already being processed by the BSP.

“It’s a done deal. They presented their business model. We already talked to them,” Fonacier had said.

The Malaysian bank will put up a branch in the country, similar to the usual mode of entry of other foreign lenders, she had said.

Last week, Fonacier also told reporters that global banking giant Credit Suisse already submitted documents to put up a representative office in the Philippines.

In 2014, former President Aquino signed into law Republic Act No. 10641, which allowed the full entry of foreign banks.

The BSP has so far accredited 10 Asian banks to fully operate in the country, namely: Japan’s Sumitomo Mitsui Banking Corp.; Singapore’s United Overseas Bank Ltd.; South Korea’s Shinhan Bank, Industrial Bank of Korea, and Woori Bank; and Taiwan’s Cathay United Bank, Chang Hwa Bank, First Commercial Bank, Hua Nan Bank, and Yuanta Commercial Bank Co. Ltd.