Banco Santander gets MB nod to buy RP unit

Banco Santander Central Hispano has obtained the approval of the Monetary Board, the policy-making body of Bangko Sentral ng Pilipinas, to acquire 100 percent of Banco Santander Philippines Inc.

Banco Santander secured the go-ahead last Friday following an earlier approval by the Monetary Board allowing HSBC to own up to 100 percent of PCI Savings Bank.

Banco Santander currently owns only 60 percent of Banco Santander Philippines. The remaining 40 percent is equally divided between two Filipino partners– the Mampayag-Davila group and a BPI trust account.

Banco Santander intends to buy out its Filipino partners to gain full and sole control of Banco Santander Philippines.

Banco Santander Philippines is classified by the BSP as a foreign bank subsidiary as compared to a foreign bank branch.

The BSP has eased up on foreign bank ownership following the revision of the General Banking Act which now allows 100 percent foreign ownership of local banks, especially distressed local banks.

The BSP believes that allowing full foreign bank ownership would bring in fresh investments at this time when foreign funds are fleeing the country due to the political crisis.

BSP Deputy Governor Alberto V. Reyes said Banco Santander needs to comply with the minimum capital requirement for expanded commercial banks of P4.8 billion.

At present, there are two other foreign banks which have obtained an expanded commercial bank license. These are ING Bank and HSBC.

Standard Chartered Bank, Reyes said, has only recently filed its application for an expanded commercial bank license. – Marianne Go