MUFG Manila starts universal banking operations

MANILA, Philippines — MUFG Bank Ltd.’s Manila branch began operating as a universal bank on Sept. 1 following an upgrade of its banking license approved by the Bangko Sentral ng Pilipinas (BSP).

The shift from commercial to universal banking gives the branch broader powers beyond traditional activities such as accepting deposits and extending loans.

In a circular letter signed by BSP assistant governor Arifa Ala, the central bank said the Monetary Board approved MUFG Manila’s request to upgrade its license through a resolution dated May 21.

The central bank subsequently issued the corresponding certificate of authority on June 5, ahead of the branch’s commencement of universal banking operations this month.

“MUFG Manila branch commenced its operations as a universal bank on Sept. 1,” the circular stated. The branch also continued to operate under the same corporate name.

Under the General Banking Law, universal banks may exercise the powers of an investment house in addition to those of a commercial bank. They may also invest in businesses outside banking and related activities, subject to statutory limits and regulatory requirements.

The BSP circular did not specify which additional products or services MUFG Manila would introduce under its upgraded license.

MUFG Bank is the banking subsidiary of Japan’s Mitsubishi UFJ Financial Group. Its Philippine presence dates back to 1953, when its predecessor opened a representative office in Manila.

The Japanese bank also expanded its local presence through a partnership with Security Bank. In 2016, then known as Bank of Tokyo-Mitsubishi UFJ, it agreed to acquire a 20-percent stake in the Philippine lender for about P36.94 billion. The alliance covered cooperation in trade financing, project financing and long-term funding, among other areas.