BSP drafts rules on entry of more foreign banks

The Bangko Sentral ng Pilipinas (BSP) is set to craft the implementing rules and regulations that will govern the entry of more foreign banks in the country, an official said late last week.

BSP Deputy Governor Nestor A. Espenilla r. made the comment as the ouse of Representatives last month approved a measure allowing more foreign banks to operate in the country.

It’s ust waiting for the signature of the President If all goes well, by end of uly, it’s either signed or lapses into law,” Espenilla said.

e have 0 days to make the implementing rules. e’re ready to do that,” he continued.

ollowing a ratification from the congressional bicameral conference committee, the measure is transmitted to alaca ang for the President’s approval. There is a 30-day period given to the President to either sign or veto a bill until the measure automatically lapses into law.

(So) before the end of the year, we open ourselves already to foreign investments,” Espenilla said.

The approved bill allows foreign banks to ac uire up to 100 percent of a local lender or to fully own a new banking subsidiary established in the country.

It amends the present law that allows foreign banks to own only up to 60 percent of a Philippine bank’s voting stock and another which limits the number of foreign lenders in the country to 10.

But the bill mandates the BSP to keep a ceiling on assets held by foreign banks at 40 percent, which means domestic banks should at all times hold at least 60 percent of the banking system’s resources.

The amendments come amid the upcoming banking integration among the Association of Southeast Asian Nations (ASEAN) members, which is expected to be implemented by 2020. The ASEAN Economic Community is set to be launched next year.

Espenilla earlier said opening up the banking system to more foreign banks will help promote more investments as they can easily facilitate the transactions of non- ilipino firms and institutions wishing to operate in the country.