“Currently, we are processing three in addition to the one that’s already approved,” BSP Deputy Governor Nestor A. Espenilla, Jr. told reporters yesterday on the sidelines of a forum at the Asian Development Bank office in Mandaluyong City. The central bank official would not disclose the names of the prospective newcomers, but noted that they are from Asia. Mr. Espenilla also said the potential entrants want to establish branches here. “As a branch, you only have to put up one headquarters, and minimum capital is P2 billion, so it’s a relatively small entry point, and from there they can grow it. Under the law, they can transform a branch into a subsidiary,” he said. In contrast, banks looking to set up a subsidiary “will need something to acquire because it’s hard for them to set up something from scratch,” Mr. Espenilla noted. “It takes too long a time,” he said. The BSP last month approved Sumitomo Mitsui Banking Corp.’s application to set up its first branch in Makati City this summer, with 40 to 50 employees who will handle basic services, such as deposits, loans, and foreign currency trading, as well as trade financing and cash management services. The Japanese lender has said that it was compelled to expand to the Philippines due to the country’s strong economic performance in recent years....... .......Despite opening up the industry to more foreign players, the new law still mandates the Monetary Board to take steps in ensuring that at least 60% of the resources or assets of the entire Philippine banking system is held by domestic banks majority-owned by Filipinos. Continue reading... Personally, I refuse to just hand over 60 percent of my investment to anyone.
