More foreign banks keen on Phl

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) said at least six more foreign banks are planning to set up shop in the Philippines.

BSP Governor Amando Tetangco Jr. said in his speech during the annual reception for the banking community Tuesday evening more foreign banks are looking at the Philippines due to the country’s liberalized banking system.

Former president Benigno Aquino III signed Republic Act 10641 in July 2014 amending the foreign banks law by removing the limit of foreign banks in the country earlier set at only 10.

The BSP has so far given nine foreign banks the green light to operate in the Philippines.

These are the First Commercial Bank of Taiwan, Sumitomo Mitsui of Japan, Shinhan Bank of South Korea, Cathay United Bank of Taiwan, the Industrial Bank of Korea, Yuanta Bank of Taiwan, the United Overseas Bank Ltd. of Singapore, Seoul-based Woori Bank, and Hua Nan Commercial Bank Ltd. of Taiwan.

“We are happy to report that nine banks have entered the Philippine banking industry thus far, with six more banks expressing interest,” Tetangco said.

Tetangco said, the country’s banking industry played a significant role in helping sustain the 71 consecutive quarters of positive gross domestic product (GDP) growth.

Data showed consolidated bank loans jumped 19 percent to reach P7.4 trillion as of end-November last year.

“Indeed, the banking sector kept pace with the growth of our economy,” he added. The country’s GDP growth accelerated to 7.1 percent in the third quarter of last year from seven percent in the second quarter.

Tetangco said, the total assets of the banking industry grew 12.4 percent to P13.2 trillion in end-November while deposits increased 13.5 percent to an all-time high of P10.1 trillion.

“In other words, ladies and gentlemen, the Philippine banking sector not only survived 2016, it continued to thrive. And more than these, our stress tests indicated that our banks can withstand extreme shocks in both credit and market risks,” Tetangco said.