A top executive of one of the country’s most aggressive banks remains unfazed by the entry of more foreign banks, after the government further liberalized the industry last year to attract more foreign direct investments.
In an event held at the Bangko Sentral ng Pilipinas recently, where the banker was one of the guests, he said he welcomed the influx of foreign lenders into the Philippines.
“There’s nothing to worry about… the more, the merrier,” the banker said confidently.
He said he knew it from the start that foreign lenders would be no match to domestic banks as far as retail banking was concerned.
“Most of them will just cater to wholesale banking,” he said, adding most of the local banks had been intensifying their retail banking business for the past years already.
However, the banker was clueless on how many foreign lenders would be allowed by Bangko Sentral to expand in the Philippines.
Bangko Sentral Deputy Governor Nestor Espenilla Jr. said the acceptance of applications of foreign banks was almost limitless, because their share of the domestic banking industry was just around 11 percent of the total assets, significantly lower than the allowable ceiling of 40 percent.
As of the first half, Bangko Sentral approved five applications from Asian banks eyeing to expand in the Philippines. These include Taiwan-based Yuanta Commercial Bank Co. Ltd. which is acquiring 100 percent of Makati-based Tongyang Savings Bank; Industrial Bank of Korea; Shinhan Bank of Korea; Japan-based Sumitomo Mitsui Banking Corp.; and Cathay United Bank of Taiwan.