BSP to monitor Citi transition
BSP is coordinating with Citi Philippines to ensure a smooth transition, including putting in place appropriate mechanisms to timely respond to any queries and concerns of its depositors and other stakeholders
In light of Citigroup Inc.’s decision to withdraw from its retail business in the country, the Bangko Sentral ng Pilipinas (BSP) said it will monitor developments pertaining to its eventual exit.
“The BSP is closely monitoring developments following the announcement of Citigroup to undergo a strategy refresh,” the BSP said in a statement.
According to the banking regulator, Citi Philippines clarified that there will be no “immediate change” in its retail business operations and its retail customers shall be serviced business-as-usual until further notice.
“The BSP is coordinating with Citi Philippines to ensure a smooth transition, including putting in place appropriate mechanisms to timely respond to any queries and concerns of its depositors and other stakeholders,” the central bank concluded.
EastWest shows interest
Citigroup earlier announced its exit in 13 markets, including the Philippines as it undergoes a strategy to refresh, focusing its Global Consumer Bank presence in Asia, Europe, Middle East and Africa on wealth management and institutional businesses.
Jose Teodoro Limcaoco, Bank of the Philippine Islands’ new President and CEO earlier expressed his interest in acquiring Citi’s retail banking business in the Philippines.
“We have told them that as soon as there is any information, we will take a look at it and most likely, we will be interested. We have sufficient capital to fund it internally,” Limcaoco explained.
EastWest Bank President and CEO Antonio Moncupa likewise shared the same sentiment as he cited their aim to further grow their business.
“The announcement triggered a lot of curiosity because Citibank is among the biggest credit card issuers in the country. It also has a very significant retail wealth management business. These businesses are among the businesses EastWest wants to grow into,” Moncupa said in a virtual press conference on Friday.
“However, we don’t know enough details to give a categorical answer. We certainly are very interested to know more about the opportunity and see how it fits our strategic intent...We’ll see what happens. Let’s wait for the development,” he added.
We have told them that as soon as there is any information, we will take a look at it and most likely, we will be interested.