Philippines banking reforms ‘rare and unprecedented’ in emerging economies

MANILA – BBVA Bank is describing new banking legislation in the Philippines as “rather rare and unprecedented amongst emerging economies” and something which reflects the Philippines Government’s commitment to hard and enduring reforms – “a prerequisite for sustaining the economy’s ongoing favourable growth momentum”.

The Philippines’ opening of its banking sector is due in part to the economy’s exceptional performance in the second half of last year despite the global financial turmoil that was triggered by the Fed’s QE tapering expectations, BBVA says.
President Aquino has signed into law a landmark Bill allowing foreign banks to acquire 100% of domestic banks besides setting up fully-owned banking subsidiaries. Limits on the number of foreign banks operating in the Philippines have also been eliminated – an important step towards implementing the ASEAN Banking Integration Framework (ABIF).
BBVA says: “We believe the Government’s bold banking reforms are a win-win situation for all stakeholders over the long haul.”  www.bbvaresearch.com (ATI).