Switzerland-based Credit Suisse AG is expanding its presence in the Philippines, joining the list of 10 Asian banks that entered the country after the government further liberalized the banking industry.
Bangko Sentral ng Pilipinas Deputy Governor Chuchi Fonacier said in an interview the Swiss bank already submitted documents to establish a local office.
“Credit Suisse has already applied to us and it has already given its documents…,” Fonacier said, adding the Bangko Sentral might approve its application for a representative office before the end of the year.
Credit Suisse Bank belongs to the Credit Suisse Group, a Swiss multinational financial services holding company headquartered in Zürich.
The company is organized as a stock corporation with four divisions: investment banking, private banking, asset management and a shared services group that provides marketing and support to the other three divisions.
Credit Suisse is set to become the first European bank to expand its presence in the Philippines, after the country liberalized the banking sector three years ago. While the Swiss bank was already present in the Philippines, the country was being served from its Asia Pacific department based in Hong Kong and Southeast Asia department based in Singapore.
It is a major financial advisor to the Philippine government and major corporations and operates a securities trading company in Makati City.
Bangko Sentral Governor Nestor Espenilla Jr. earlier said more foreign banks planned to establish presence in the Philippines to take advantage of the country’s positive growth prospects and the more liberalized banking system.
The Bangko Sentral allowed 10 Asian banks to fully operate in the country, including Japan’s Sumitomo Mitsui Banking Corp.; Singapore’s United Overseas Bank Ltd.; South Korea’s Shinhan Bank, Industrial Bank of Korea and Woori Bank; Taiwan’s Cathay United Bank, Chang Hwa Bank, First Commercial Bank, Hua Nan Bank and Yuanta Commercial Bank Co. Ltd.
Fonacier said six more applications were currently pending at the Bangko Sentral, including two from Taiwan, one from Indonesia, two from China and one from Korea.
She said the Taiwanese banks were interested in putting up an overseas banking units while the rest were more inclined to put up local branches.
Republic Act 10641, which further liberalized the banking industry in 2014, allows a foreign bank to own up to 100 percent of an existing local bank or a new subsidiary.
Foreign banks are also allowed to control up to a combined 40 percent of the total assets of the banking system. This was 10 percentage points higher than the previous 30-percent limit.
Foreign banks can now apply to operate in the Philippines either as a branch or as a wholly-owned subsidiary. RA 10641 amended RA 7721, which was passed into law in May 1994.
