Another Taiwan bank set to enter Philippines

MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) has given Chang Hwa Bank Commercial Bank Ltd. of Taiwan the green light to set up shop in the Philippines, the 10th foreign bank to enter since the country’s banking sector was opened to foreign players.

BSP Deputy Governor Chuchi Fonacier said Chang Hwa Bank is the fifth Taiwanese bank to establish its presence in the country since the banking industry was opened to foreign banks through Republic Act 10641 or an Act Allowing the Full Entry of Foreign Banks in the Philippines.

“Yes there was one recently approved by the Monetary Board, the 10th overall,” she said.

The regulator has earlier allowed Taiwan’s Hua Nan Commercial Bank Ltd., Cathay United Bank Co. Ltd., Yuanta Commericla Bank Co. Ltd., and First Commercial Bank to establish branches in the country.

The BSP has also approved the entry of Korea’s Shinhan Bank Co. Ltd., Woori Bank, and Industrial Bank of Korea as well as United Overseas Bank Ltd. of Singapore, and Sumitomo Mitsui Banking Corp. of Japan since former president Benigno Aquino III signed the law liberalizing the country’s banking sector in July 2014.

Chang Hwa Bank currently has nine branches and one sub-branch overseas, all located in the major international financial centers including Hong Kong, Singapore, New York, and Tokyo.

The Philippines continued to be a sweet investment spot for foreign banks in the Asian region primarily due to its strong economic fundamentals and growth potential.

A total of 25 foreign bank branches and subsidiaries authorized to operate in the country booked a 6.8 percent increase in aggregate resources amid the 10.8 percent rise in deposits last year.

Likewise, profits of foreign banks almost doubled to P11.2 billion last year from P5.9 billion in 2015, driven mainly by the substantial increase in profits from non-recurring activities.

State-run Bank of Taiwan is set to establish a representative office in the country after getting the approval form the Financial Supervisory Commission.

The largest bank in Taiwan has 169 domestic branches as well as presence in Shanghai, Hong Kong, Guangzhou, Fuzhou, Tokyo, London, Singapore, South Africa, Los Angeles, and New York.