Tuesday, 23 April 2024
Malaysian bank to establish Philippine presence
A listed Malaysian bank will establish presence in the Philippines as it expects to get the Bangko Sentral ng Pilipinas’ (BSP) nod before yearend.
On the sidelines of the Financial Executives Institute of the Philippines’ 2017 conference Friday, BSP Deputy Governor Chuchi G. Fonacier told reporters that of the eight foreign banks that Governor Nestor A. Espenilla Jr. earlier said had expressed interest to do business here, two were from Asean, and one of them already submitted the requirements.
Fonacier said the application of the Malaysian lender, which she declined to identify, is currently being processed by the BSP.
“It’s a done deal. They presented their business model. We already talked to them,” Fonacier said.
The Malaysian bank will put up a branch in the country, similar to the usual mode of entry of other foreign lenders, the BSP official said.
As for the six other interested banks, most of them were from East Asia, according to Fonacier.
“The environment is conducive for their business here, and of course, the demographic” of the Philippine market, she explained.
Half of the interested foreign banks were “already quite advance” in their respective applications, while the remainder had only expressed intention so far, she said.
In 2014, former President Aquino signed into law Republic Act No. 10641, which allowed the full entry of foreign banks.
To date, the BSP allowed 10 Asian banks to fully operate in the country, namely: Japan’s Sumitomo Mitsui Banking Corp.; Singapore’s United Overseas Bank Ltd.; South Korea’s Shinhan Bank, Industrial Bank of Korea, and Woori Bank; as well as Taiwan’s Cathay United Bank, Chang Hwa Bank, First Commercial Bank, Hua Nan Bank, and Yuanta Commercial Bank Co.
Re-disseminated by The Asian Banker from the Philippine Daily Inquirer
