BSP clears entry of Taiwan bank

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) has approved the entry of Taipei-based Hua Nan Commercial Bank Ltd. bringing to nine the number of foreign banks that has entered the country over the past two years.

BSP officer-in-charge Nestor Espenilla Jr. said Hua Nan Bank is the fourth Taiwanese bank that has entered the country since former president Benigno Aquino III signed RA 10641which amended the foreign banks law.

The BSP earlier gave Sumitomo Mitsui of Japan, Shinhan Bank of South Korea, Cathay United Bank of Taiwan, the Industrial Bank of Korea, Yuanta Bank of Taiwan, and the United Overseas Bank Ltd. of Singapore, Seoul-based Woori Bank, and First Commercial Bank of Taiwan the green light to operate in the Philippines.

The Philippines is set to become the 14th overseas branch of the Hua Nan Bank. It also has overseas branches in Los Angeles, New York, Hong Kong, Singapore, London, Ho Chi Minh City, Sydney, Macau, Shenzhen, Shanghai, Fuzhou, and Shenzhen Baoan Sub-Branch as well as a representative office in Hanoi.

Prominent local entrepreneur Lin Hsiung-cheng and several Southeast Asian overseas Chinese investors founded Hua Nan Bank in 1919. Hua Nan Bank now maintains 186 domestic branches and one Offshore Banking Branch within Taiwan.

At least three more banks have expressed interest in setting up shop in the Philippines.

Espenilla earlier said foreign banks have shifted their strategy in establishing their presence in the Philippines through strategic partnerships with local banks.

“There has been a shift in approach. What is happening more are not new entrants but new partnerships. So they are looking for possible partnerships,” he added.