Taiwan bank opens Philippines branch

MANILA, Philippines — Chang Hwa Bank Commercial Bank Ltd. of Taiwan has opened its Manila branch more than a year after it was authorized by the Bangko Sentral ng Pilipinas (BSP) to set up shop in the Philippines.

In a circular, BSP Deputy Governor Chuchi Fonacier said The Chang Hwa Commercial Bank Ltd. – Manila branch started its operations last July 9 after receiving the corresponding certificate of authority to operate as a commercial bank from the BSP last June 13.

The Taiwanese bank was registered with the Securities and Exchange Commission last Jan. 31.

Aside from the Philippines, Chang Hwa Bank currently has several branches and one sub-branch overseas, all located in the major international financial centers including Hong Kong, Singapore, New York and Tokyo.

The BSP’s Monetary Board has approved the application of 12 foreign banks to set up branches in the country since the banking industry was opened to foreign banks through Republic Act 10641 or an Act Allowing the Full Entry of Foreign Banks in the Philippines.

Aside from Chang Hwa Bank, the BSP also allowed Taiwan’s Hua Nan Commercial Bank Ltd., Cathay United Bank Co., Yuanta Commercial Bank and First Commercial Bank to establish branches in the country.

The BSP has also approved the entry of 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 since former president Benigno Aquino III signed the law liberalizing the country’s banking sector in July 2014.

The Philippines continued to be a sweet investment spot for foreign banks in the Asian region primarily due to its strong economic fundamentals and growth potential.

A total of 25 foreign bank branches and subsidiaries authorized to operate in the country booked a 6.8 percent increase in aggregate resources amid the 10.8 percent rise in deposits last year.

Likewise, profits of foreign banks almost doubled to P11.2 billion last year from P5.9 billion in 2015, driven mainly by the substantial increase in profits from non-recurring activities.

Foreign banks operating in the Philippines include ANZ Banking Group Ltd., Deutsche Bank AG, ING Bank NV, Mizuho Bank Ltd. – Manila Branch, Standard Chartered Bank, the Hongkong & Shanghai Banking Corp., Maybank Philippines, Bangkok Bank Public Co. Ltd., Bank of America NA, Bank of China Ltd. – Manila Branch, Citibank NA, JP Morgan Chase Bank NA, KEB Hana Bank – Manila Branch, Mega International Commercial Bank Co. Ltd., and MUFG Bank.