Full Entry of Foreign Banks in the Philippines, Republic Act No. 19641
The full entry and operations of foreign banks in the Philippines shall be allowed through any of the following modes of entry:
- Acquiring, purchasing or owning up to 100% of the voting stock of an existing domestic bank.
- Investing in up to 100% of the voting stock of a new banking subsidiary incorporated in the Philippines.
- Establishing branches with full banking authority.
The Act provided the guidelines which the Monetary Board of the Bangko Sentral ng Pilipinas must observe before approving the application for entry of foreign banks. Only established, reputable and financially sound foreign banks shall be allowed to operate in the Philippine banking system.