BSP eyes to accommodate entry of more foreign banks

Bangko Sentral ng Pilipinas (Central Bank of the Philippines). Wikipedia photo

MANILA — The Bangko Sentral ng Pilipinas sees entry of more foreign banks in the country.

“To begin with, the foreign bank penetration in the country is actually very small,” BSP Deputy Governor Nestor Espenila Jr.

said in an interview during the sidelines of the Regional Social Dialogue organized by the UNI Apro Asean Bank Unions Council (ABUC) and the Asean Services Employees’ Trade Unions Council.

“Theoretically, it is still four-fold but you should remember that assets of Philippine banks are not sitting in place.

Philippine banks are growing really fast,” he added.

Last June 25, the Monetary Board approved the application of Yuanta Bank of Taiwan to operate in the Philippines by acquiring 100 percent of a local thrift bank.

This is following the passage of a law removing the limit of ownership among foreign banks in the country.

President Aquino signed the law July last year removing the previous 60 percent limit on ownership.

Foreign banks may now own as much as 100 percent of any local bank, under the new law.

The central bank also said that it has received applications late December last year and has approved entry of several banks since January.

Among those already approved by the BSP are Japan’s Sumitomo Mitsui, South Korea’s Shinhan Bank, Taiwan’s Cathay United, and the Industrial Bank of Korea.

“Asia is the growing part of the global economy and Asia itself is trading amongst themselves. We also have this Asean Economic Community so there are so many economic drivers that is why that is the case,” he added.