An official of the Bangko Sentral ng Pilipinas admitted that the asset and capital size of the country’s banking system pale in comparison to those in the region. One reason is, the country has the lowest provision for foreign ownership, which is capped by constitutional limitations at 40 percent. Compare this with the 99 percent in Indonesia, the lack of a “hard limit” to foreign ownership in Malaysia and Singapore, and a “flexibility clause” that allows foreign ownership beyond 50 percent in Thailand. For perspective, the BSP official noted that the total assets of all Philippine banks would be equivalent to only one big bank in Malaysia; the combined assets of the three biggest banks in the country would approximate one bank in Thailand; and the total capitalization of the entire Philippine banking system would be the size of just one Singaporean bank. CHA-CHA anyone?
Posted on: Tue, 26 Aug 2014 05:52:38 +0000
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