[Philippine World Journal Special News]
On Friday, a senior official from the Central Bank of the Philippines (BSP) said that more and more foreign banks are seeking to conduct business in the Philippines because of the sound macroeconomic environment and stable investment environment.
Deputy Governor of the Central Bank of Philippines Chuchi Fonacier said that three banks from South Korea, Indonesia and Hong Kong, China have expressed interest in setting up branches in the Philippines.
Fernacia said that as the Philippines shows good macroeconomic fundamentals, more and more foreign banks are considering setting up branches and representative offices in the Philippines.
Since former President Benigno Aquino III signed the "Republic Act 10641", the "Act that Allows Foreign Banks to Full Access" in July 2014, the Philippines has now allowed 12 foreign banks, including the world's largest banks, to open branches in the Philippines, lifting the limit on the number of foreign banks entering the Philippines.
includes South China Commercial Bank of Taiwan, Cathay World Bank, Yuanda Bank, First Commercial Bank and Changhua Commercial Bank, South Korea Xinhan Bank , Industrial Bank and Youli Bank , Japan Sumitomo Bank, Singapore UOB , Malaysia CIMB International Bank and Industrial and Commercial Bank of China (ICBC).
Similarly, the Central Bank of the Philippines allows 13 foreign banks to set up representative offices or liaison offices in the Philippines.
The foreign banks that open representative offices include National Bank of India, Ogaki Kori Bank of Japan, Wells Fargo, Korea Development Bank, Singapore Bank , Singapore DBS Bank , Japan International Cooperation Bank, Rothschild (Singapore) Bank, New York Mellon Bank, Export-Import Bank of Korea, Swiss Bank , Credit Suisse Bank and Taiwan Bank.
Diokno said that banks in the Philippines remain strong, with stable funds and adequate capital, and that the Philippines' credit liquidity dynamics are aligned with the expansion of economic activity.
According to the latest preliminary data from the Central Bank of Philippines, the banking system assets reached 17.45 trillion pesos at the end of May this year.
