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ON THE LIBERALIZATION

With Republic Act No. 10641, foreign nationals can now own up to 100% of Philippine banks. A PRIMER

•  Acquire up to 100% of the voting stock of an existing bank

•  Incorporate a 100%-owned bank subsidiary •  Establish a Philippine branch

MODES OF ENTRY

•  Must be widely known and publicly-listed in its country of origin; OR

•  Owned or controlled by the government of its country of origin

•  Ensure geographic representation and complementation

•  Consider strategic trade and investment relationships with foreign country

•  Demonstrated capacity & global reputation of foreign bank

•  Reciprocity in the country of origin •  Willingness to full share foreign technology

QUALIFICATIONS

GUIDELINES FOR BSP APPROVAL

•  Universal Banks – PhP4.95B •  Commercial Banks – PhP2.4B www.pjslaw.com

MINIMUM CAPITALIZATION

•  Foreign banks and domestic banks shall enjoy equal treatment.

•  Foreign branches may open up to five sub-branches.

•  60% of the assets of the entire banking system must be held by majority Filipino-owned banks.

•  Nationality restrictions on land ownership apply.

PRIVILEGES & LIMITATIONS