More foreign banks searching for Philippine partners, says BSP exec

MORE FOREIGN banks have expressed their interest to invest in local banks, a signal of continuous offshore confidence in the local financial system, a central bank official said.

Bangko Sentral ng Pilipinas Deputy Governor Nestor A. Espenilla, Jr. told reporters on Monday evening that there are some non-Asian banks who are currently looking for banking partners here in the Philippines.

He noted these foreign banks are not included among the six foreign lenders, which were mentioned last week by BSP Governor Amando M. Tetangco, Jr. as having expressed their interest in establishing a presence here in the Philippines.

“So far their idea is buy-in, so they’re looking for buy-in opportunities, not so much a branch,” Mr. Espenilla told reporters on Monday.

“Unlike branches that it’s basically a unilateral decision to go in, buy-in is you’re looking for a partner, naghahanap ka ng asawa ( you are looking for your lifetime partner) so to speak,” he explained.

Republic Act 10641 states that foreign banks — who are required to be publicly listed in their home country — can operate in the Philippines by acquiring, purchasing or owning up to 100% of the voting stock of an existing bank.

New lenders can also invest in up to 100% of the voting stock of a new banking subsidiary incorporated, while a third option of entry would be through putting up branches with full banking authority.

“So they have to find the right partner that meets their business strategy, so that takes longer. So we know about it once they’ve found a partner and agreed to move forward, but they have told us that they’re looking,” Mr. Espenilla said, refusing to disclose how many banks are already inquiring of acquiring a stake in existing Philippine banks. —