Two more foreign banks were to make their presence felt in the Philippines before the end of the year, according to the Bangko Sentral ng Pilipinas (BSP).
BSP Deputy Governor for the Supervision and Examination Sector Chuchi Fonacier said a Malaysian lender and a Swiss bank have applied for permission to operate in the Philippines and their application were seen approved within the year.
Credit Suisse, the Swiss bank intending to begin as soon as possible, is looking to establish its first representative office in the Philippines. So-called Rep-Os are nonlending entities that act as the eyes or ears of their principals looking out for business opportunities in the Philippines.
The Malaysian lender, on the other hand, intends to put up a branch.
Several banks have since made their presence felt in the Philippines following the sector’s liberalization allowing for the entry of more foreign lenders.
The legislation allowing greater foreign participation was approved in 2014, consistent with the financial integration goals of countries grouped
under the Asean.
In addition, six more foreign banks have expressed the intent to operate in the country.
Fonacier said two of the six interested banks are based in Taiwan, two are from China, one from Indonesia and another from South Korea.
While the six banks have yet to formally submit their application to the BSP, Fonacier said all look forward to putting up a branch, except for one Taiwanese bank interested in putting up an offshore banking unit or OBU.
One other Korean bank is partnering with a local bank by buying equity.
The State Bank of India was the latest foreign bank allowed to gain entry. Low volume of activities later forced its managers to stop operations.