3 more foreign banks to set up Manila branches

More foreign banks are looking at establishing their presence in the Philippines on the back of the country’s sound macroeconomic environment and stable investment climate, a ranking official of the Bangko Sentral ng Pilipinas (BSP) said on Friday.

Three banks from South Korea, Indonesia, and Hong Kong have signified their interest in putting up branches in the Philippines, BSP Deputy Governor Chuchi Fonacier said.

Fonacier said more foreign banks are looking at setting up branches and representative offices in the Philippines on the back of the country’s sound macroeconomic fundamentals.

The BSP has so far allowed 12 foreign banks, including the world’s largest bank, to open branches in the Philippines since former president Benigno Aquino III signed Republic Act 10641 or An Act Allowing the Full Entry of Foreign Banks in July 2014 removing the limit in the number of foreign banks that can enter in the country.

These include Taiwan’s Hua Nan Commercial Bank Ltd., Cathay United Bank, Yuanta Bank, First Commercial Bank, and Chang Hwa Bank Commercial Bank Ltd.; Korea’s Shinhan Bank, the industrial Bank of Korea, and Woori Bank; Sumitomo Mitsui of Japan; United Overseas Bank Ltd. of Singapore; CIMB Bank of Malaysia, and Beijing-based Industrial and Commercial Bank of China (ICBC).

Likewise, the BSP has allowed 13 foreign banks to establish representative or liaison offices in the country.

Foreign banks that opened representative offices include 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, UBS AG, Zurich-based Credit Suisse and Bank of Taiwan.

In his first ever bankers’ night as central bank governor, BSP Governor Benjamin Diokno said the regulator is committed to strengthen risk governance, leverage on technology and achieve greater and broader access to financial services.

The BSP is also committed to uphold the integrity of financial system and safeguard the interest of the public, and accelerate capital markets reforms, Gov. Diokno also said.

The BSP chief said monetary authorities are also further enhancing the resilience of Philippine banks to sustain the banking system’s current position of strength.

Philippine banks remain robust, well funded, and adequately capitalized, while the credit-liquidity dynamics in the country are consistent with expanding economic activities, Diokno said.

Latest preliminary data from the BSP showed assets of the banking system reached P17.45 trillion in end May this year.