Manila rule change lures foreign banks
At least seven Asian banks are looking to begin lending or open offices in the Philippines, lured by juicy prospects in the region's second-fastest growing economy as their domestic markets languish, central bank officials said.
At least seven Asian banks are looking to begin lending or open offices in the Philippines, lured by juicy prospects in the region's second-fastest growing economy as their domestic markets languish, central bank officials said.
The surge in interest comes as steps adopted last year by the Philippines to remove caps on foreign banks take effect.
In a country where only one household in five has a bank account, Manila is keen to develop a comparatively small lending sector, worth 10 trillion pesos (HK$1.76 trillion) in assets, into an engine to drive an economy it expects to boom 7 to 8 per cent this year.
Industry insiders said among those looking to open branches or expand presence were Taiwan's Cathay United Bank and Taiwan Cooperative Bank, alongside South Korea's Shinhan International Bank, Woori Bank and Busan Bank. Central bankers declined to identify contenders by name, but said at least seven had expressed interest.
"Foreign banks are coming in. We have approved one, and there are more in the pipeline .… around seven," central bank governor Amando Tetangco said.
A unit of Japan's Sumitomo Mitsui Financial Group last month won approval to open a Manila branch, the first foreign bank to do so under new provisions.