MANILA, Philippines - Foreign business groups are supporting the passage of a proposed measure seeking to further liberalize the entry and scope of operations of foreign banks in the country.
In a statement, the Joint Foreign Chambers (JFC) said it has sent letters to Senate committee on banks chairman Sergio Osmeña III and House committee on banks chairman Sonny Collantes to express support for Senate Bill (SB) 2159 and House Bill (HB) 3984, which are pushing for amendments to RA 7721 or An Act Liberalizing the Entry and Scope of Operations of Foreign Banks in the Philippines.
“Amending the 20-year law to increase foreign ownership to up to 100 percent can pave the way for more competition and capital that ultimately benefits the public. Increased participation by foreign banks will help sustain the growth of the Philippine economy,†the JFC said.
It also said the passage of HB 3984 would allow the country to prepare for the Association of Southeast Asian Nations (Asean) financial integration.
“It is consistent with the Asean Banking Integration Framework under which so-called qualified Asean Banks can operate within Asean jurisdictions on equal terms as domestic banks of that jurisdiction subject to certain prudential and governance standards,†the group said.
The amendment sought by the two bills, the JFC said, is likewise consistent with the policy direction of the Bangko Sentral ng Pilipinas to introduce bankingreforms which are responsive to the needs of stakeholders and market conditions.
The approval of HB 3984 in the committee level and filing of the counterpart SB 2159 are considered positive developments by the JFC.
The JFC counts the American, Australian-New Zealand, Canadian, European, Japanese and Korean foreign chambers along with the Philippine Association of Multinational Companies Regional Headquarters as its core members.