Philippine President Aquino has signed into
law a bill allowing the “full entry of foreign banks into the Philippines” in
preparation for next year’s Asean regional economic integration.
Communications
Secretary Herminio Coloma on Sunday announced the signing of Republic Act No.
10641 and that of four other new legislative measures.
To
allow the full entry of foreign banks, the new law amended Republic Act No.
7721, or “An Act Liberalising the Entry and Scope of Operations of Foreign
Banks in the Philippines.”
Under
the old law, foreign banks could operate within the Philippine banking system
only by acquiring, purchasing or owning up to 60 per cent of the voting stock
of an existing bank.
They
could also do so “by investing in up to 60 per cent of the voting stock of a
new banking subsidiary incorporated under the laws of the Philippines” or “by
establishing branches with full banking authority.”
Coloma
said the new law, RA 10641, was “the product of careful study.”
“Let’s
think about the reality that we’re moving toward an Asean integration, and that
includes the aspect of financial integration,” he said in Filipino over Radyo
ng Bayan.
“There
are a lot of [businessmen] who want to invest here in our country,” Coloma
said, adding that they asked if the banks that they had been using in their
businesses could be allowed to open here.”
Under
the Asean Economic Community, member countries will have “a single market and
production base, a highly competitive economic region, a region of equitable
economic development and a region fully integrated into the global economy.”
Besides
RA 10641, Aquino also signed a new law that would further strengthen the
government’s campaign against illegal drugs and another one seeking to
strengthen protection for consumers buying brand-new motor vehicles.
The
President also signed “An Act to Effectively Instill Health Consciousness
through Graphic Health Warnings on Tobacco Products” and “An Act Promoting Job
Generation and Inclusive Growth through the Development of Micro, Small and
Medium Enterprises.”
Christian
V. Esguerra
Business & Investment Opportunities
Saigon Business Corporation Pte Ltd (SBC) is incorporated
in Singapore since 1994.
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