Toyota subsidiary gets quasi-bank license

Toyota Financial Services Philippines Corp. (TFS Philippines) can now borrow money from the public and in turn, re-lend to individual or corporate borrowers.

This as the Bangko Sentral ng Pilipinas (BSP) has awarded a quasi-banking license to TFS Philippines.

Non-bank financial institutions with quasi-banking functions are authorized to borrow funds from the public for purposes of re-lending or purchasing of receivables, but are not permitted to issue deposit liabilities.  These institutions must have a minimum capital of P300 million and a comprehensive risk management system.

“We can also participate in the development of the Philippine capital market,”  TFS Philippines president Dexter Pasion said.

TFS Philippines, with total capital of P1 billion, is 60 percent owned by Toyota Financial Services Corp. (TFS), a leading financial services group based in Japan and controlled by Toyota Motor Corp. The Metrobank Group holds 40 percent, with Philippine Savings Bank owning 25 percent and Metrobank 15 percent.

As part of Toyota’s global network of sales finance companies, TFS Philippines services the customers of Toyota through financing and leasing services, as well as wholesale financing for Toyota dealers.

TFS Philippines has a total of over 35,000 customers since 2002. 

Ranked third largest financing firm by the Securities and Exchange Commission (SEC), TFS Philippines posted a net income of P157 million and assets of P10.1 billion in fiscal year 2008.

The BSP resumed issuing licenses of quasi-banking functions to investment houses and finance companies in February 2007 after seven years of suspension.  A moratorium on the granting of licenses of quasi-banking functions was issued in August 2000.  TFS Philippines is the first institution to be granted a quasi-banking license since the freeze order was lifted.