Philippines allows full entry of foreign banks

Photo via clarabridge.com

Photo via clarabridge.com

via rappler.com – President Benigno Aquino III has signed into law a bill allowing the “full entry of foreign banks into the Philippines” in time for the 2015 ASEAN regional economic integration.

The new law, Republic Act (RA) 10641 or “An Act Allowing the Full Entry of Foreign Banks in the Philippines,” amends RA 7721, “An Act Liberalizing the Entry and Scope of Operations of Foreign Banks in the Philippines.”

The 20-year-old RA 7721 allowed the entry of foreign banks either through ownership of up to 60% of the voting stock of an existing domestic bank or of a new banking subsidiary or establishment of branches with full banking authority.

RA 10641 now allows foreigners to own up to 100% of domestic banks and facilitate the entry of established, reputable and financially sound foreign banks in the Philippines. It also granted locally-incorporated subsidiaries of foreign banks the same banking privileges as domestic banks of the same category. You might want to ask around before you open a personal checking account at a bank.

RA 10641 is expected to give the Philippines advantage in the economic integration of the Association of Southeast Asian Nations (ASEAN), where a common banking framework will be implemented.

The ASEAN Banking Integration Framework, to be implemented by 2020, will allow qualified ASEAN banks (QABs) to operate within ASEAN jurisdictions on equal terms as domestic banks, subject to certain prudential and governance standards.

A product of careful study

RA 10641 was a product of careful study, Presidential Communications Operations Office (PCOO) Secretary Herminio “Sonny” Coloma said.

“Let’s think about the reality that we’re moving toward an ASEAN integration, and that includes financial integration,” he said in Filipino over Radyo ng Bayan.

Under the integration, member countries will have “a single market and production base, a highly competitive economic region, a region of equitable economic development and a region fully integrated into the global economy.”

Coloma said many businessmen who want to invest in the country were asking if their banks could be allowed to operate here.

The Bangko Sentral ng Pilipinas (BSP) welcomes the signing of RA 10641.

“The economic benefits that can be derived from a further opening of the Philippine banking system to foreign banks are clear augmentation of financial resources [through increased foreign direct investments] that will be available to the domestic banking market, transfer of technology, enhancement of human resource skills,” BSP Governor Amando Tetangco Jr. said in a text message to reporters.

Senator Sergio Osmeña III, the proponent of the Senate bill allowing full entry of banks, said: “Greater foreign participation in the banking and financial sectors is expected to augment the financial resources to which the Philippine economy may have access, thus supporting the initiatives of the present administration in implementing various infrastructure projects and rehabilitation programs.”

Find more like this: Business

Comments

  1. […] One of the most popular forms of home-mortgage loans available to homebuyers is the FHA home mortgage. FHA home mortgage loans are made through the Federal Housing Administration, a government agency. The purpose of the FHA is to provide home mortgage financing to qualified homebuyers through a program administered by the Department of Housing and Urban Development (HUD). To qualify for a home loan through the FHA, a home must be appraised at a reduced cost to determine its market value. Once the cost of the home is established, the home-buyer is eligible to apply for home-mortgage financing from a lender approved through HUD. Do you want to learn more? Visi  original site […]

  • U.N. Rights Council to Investigate Killings in Philippine Drug War
  • Philippines declares national alert after 456 die from dengue fever
  • Trying to save the stories of a Philippine culture, one scan at a time
  • Pinoy archaeologist brings new human species discovery to Australia
  • Philippines a slowly ageing society – PIDS study
  • Page 1 | 2 | 3 | 4 | 5 | 6 | 7

    Entertainment

  • Nickelodeon releases first look at rebooted classic kids program Blue’s Clues with Filipino-American host Joshua Dela Cruz
  • How Marvel’s first featured Pinoy superhero can save society
  • This play tells the urgent story of a Filipino comfort woman
  • Will ‘Sahaya’ be the first Pinoy series on Netflix?
  • Z-GIRLS, Z-BOYS with Pinoy members to debut in Korea
  • MORE...

    Features

  • My story, and the new story of Filipino immigration
  • An appreciation of Moro food can bring Pinoy Muslims and Christians closer, says this Muslim chef
  • Showcase of PH culture, heritage
  • US and Philippines: Friends, Partners, and Allies
  • A Transgender Paradox, and Platform, in the Philippines
  • MORE...

    Tourism

  • Northern Blossom Flower Farm: Atok’s floral carpet
  • Philippines records ‘all-time high’ 7.1M tourist arrivals in 2018
  • Philippines island Boracay reopens for test run following huge cleanup
  • Philippines closes ‘cesspool’ tourist island of Boracay
  • Boracay Set to Ban Tourists for Six Months During Island ‘Rehabilitation’
  • MORE...

    Sports

  • Filipino speed skater bags spot in 2020 Winter Youth Olympics
  • Pinoy gymnast Carlo Yulo earns historic qualification in worlds
  • Finding a way to bring the NBA to the Philippines
  • First Filipino table tennis Olympian Ian “Yanyan” Lariba dies at 23
  • Skateboarder Margielyn Didal wins 4th gold for Philippines
  • MORE...

    OFW News

  • Filipino maids’ dragon boat team makes splash in Hong Kong
  • DOLE suspends OFW deployment to Kuwait
  • Some OFWs turn to vlogging to beat loneliness, share life abroad
  • Overseas Filipino Bank to serve immigrants, workers
  • The ‘bagong bayani’ of the Philippines
  • MORE...

    Environment

  • ‘Sordid Chapter’ Ends As Philippines Sends Back Canada’s Trash
  • Southeast Asia became dumping ground for plastic waste – study
  • Boracay Set to Ban Tourists for Six Months During Island ‘Rehabilitation’
  • Boracay: the good, bad and ugly sides to Philippine island for tourists
  • Luzon has greatest concentration of unique mammals
  • MORE...

    Pinoy Places
    and Faces