Taiwan’s Yuanta Bank to start operations in PH

MONETARY authorities have approved the entry of Taiwanese lender Yuanta Commercial Bank Co. Ltd., the fifth foreign bank allowed to operate in the country.

Bangko Sentral ng Pilipinas (BSP) Deputy Governor Nestor A. Espenilla Jr. told reporters late Thursday that Yuanta “acquired Tongyang Savings Bank Inc. (Philippines)” for it to be able to do business here. The entry of Yuanta was approved by the Monetary Board last week, he said.

Formerly known as Orion Savings Bank, Tongyang is a wholly owned subsidiary of Yuanta Securities Korea Co. Ltd., which is majority-owned by Taiwan-based Yuanta Securities Asia Financial Services Ltd., according to its website.

A Bloomberg report quoted Yuanta Financial senior vice president Vincent Chen as say- ing that the Taiwanese bank was planning to invest P644 million to replenish the capital of its new Philippine subsidiary.

Also, the report said Yuanta completed the acquisition of Tongyang Securities last year.

On its website, the Taipei-headquartered Yuanta said its assets have grown to more than 500 billion New Taiwan dollars in recent years. Formerly known as Asia Pacific Commercial Bank when established in 1992, it now has more than 86 branches in Taiwan.

The BSP earlier gave its goahead for four Asian banks to operate in the country: Sumitomo Mitsui Banking Corp. of Japan; South Korea’s Shinhan Bank; also South Korean government-owned Industrial Bank of Korea, and Cathay United Bank of Taiwan.

In July last year, President Aquino signed into law Republic Act No. 10641, which allows the full entry of foreign banks.