European bank eyes presence in Philippines

MANILA, Philippines — Another foreign bank, this time from Europe, has expressed interest in establishing a presence in the Philippines, a top official from the Bangko Sentral ng Pilipinas (BSP) said.

BSP Deputy Governor Chuchi Fonacier said a representative of a bank in Europe indicated such interest during the 2019 Annual Reception for the Banking Community last Jan. 25.

She said she is not at liberty to divulge the identity of the European bank that has expressed interest in the Philippines.

According to Fonacier, the said foreign bank is still undecided on whether to open a branch or a liaison office in the country.

The BSP has so far allowed 12 foreign banks to open branches in the Philippines since former president Benigno Simeon Aquino III signed Republic Act 10641 or An Act Allowing the Full Entry of Foreign Banks in July 2014 which removed the limit in the number of foreign banks that can enter the country.

These banks are 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 central bank has given 13 foreign banks the green light to establish representative or liaison offices in the country.

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