Taiwan’s Cathay United Bank converts operations into commercial banking

MANILA, Philippines – Cathay United Bank Co. Ltd., a wholly-owned subsidiary of Cathay Financial Holding Co. of Taiwan, has converted its representative office in Manila into a commercial bank.

The Monetary board of the Bangko Sentral ng Pilipinas has approved the application of Cathay United Bank for a commercial bank license in the Philippines in April last year.

The Taiwanese bank was registered with the Securities and Exchange Commission (SEC) last May 28 and was granted the corresponding Certificate of Authority to Operate by the BSP last Sept. 24.

Cathay United Bank has presence in Cambodia, China, Hong Kong, Singapore, Malaysia, Vietnam, Thailand, Myanmar, Lao PDR, and Indonesia.

Aside from Cathay United Bank, the BSP has also allowed five more foreign banks to set up shop in the Philippines. These include Sumitomo Mitsui of Japan, Shinhan Bank of South Korea, the Industrial Bank of Korea, Yuanta Bank of Taiwan, and United Overseas Bank Limited (UOB) of Singapore.

The Philippine banking industry remains attractive to foreign players due to its 100-million population and a low credit penetration.

Foreign banks were allowed to set up shop in the Philippines in the first wave of liberalization through RA 7221 passed in 2003.

Foreign banks in the Philippines include Citibank NA, the HongKong and Shanghai Banking Corp., Maybank Philippines, Bank of Tokyo-Mitsubishi UFJ Ltd., Standard Chartered Bank, ANZ Banking Group Ltd., JP Morgan Chase Bank NA, Mizuho Bank Ltd., ING Bank NV, CTBC Bank Philippines, Deutsche Bank AG, Mega International Commercial Bank Co. Ltd., Bank of China Limited, Bangkok Bank Public Co. Ltd., Korea Exchange Bank, and Bank of America NA.