More foreign banks plan to enter Phl
More foreign banks are planning to set up banking operations in the Philippines after the industry was liberalized more than two years ago, the Bangko Sentral ng Pilipinas (BSP) said.
BSP Deputy Governor Chuchi Fonacier said six more foreign banks are looking at establishing branches in the Philippines.
Fonacier said two of those interested are from Taiwan, two are from China, one from Indonesia and one from South Korea.
A source earlier said Seoulbased KB Kookmin Bank, the largest bank in South Korea, is setting its sight on the Philippines.
The BSP’s Monetary Board has so far approved the entry of 11 foreign banks since Republic Act 10641 – an act that allows the entry of foreign banks into the Philippines through the establishment of wholly-owned operations with full banking authority – was signed by former president Benigno Aquino III in July 2014.
Foreign banks that were given the green light to establish branches in the Philippines are Korea’s Shinhan Bank, the industrial Bank of Korea, and Woori Bank; Taiwan’s Hua Nan Commercial Bank Ltd., Cathay United Bank, Yuanta Bank, First Commercial Bank, and Chang Hwa Bank Commercial Bank Ltd.; Sumitomo Mitsui of Japan; United Overseas Bank Ltd. of Singapore; and Malaysia’s CIMB Bank Berhad.
Aside from the establishment of branches in the Philippines, more foreign banks are also setting up representative offices in the country on the back of the strong macroeconomic fundamentals.
A total of 11 foreign banks have established liaison offices in the country. These are the State Bank of India, Ogaki Kyoritsu Bank Ltd., Wells Fargo Bank, Korea Development Bank, Bank of Singapore Ltd., DBS Bank Ltd., Japan Bank for International Cooperation, Rothschild (Singapore) Ltd., The Bank of New York Mellon, Korea Eximbank and UBS AG.
State-run Bank of Taiwan and Zurich-based Credit Suisse are also looking at establishing representative offices in the country to deal directly with the public by promoting and giving information about the services offered by the foreign bank.