The central bank on Friday identified Taiwan-based Yuanta Commercial Bank Co., Ltd. as the fifth foreign bank allowed to operate in the Philippines as part of the liberalization of the local banking sector.
Nestor Espenilla Jr., deputy governor at the Supervision and Examination Sector of the Bangko Sentral ng Pilipinas (BSP), said the Monetary Board has approved Yuanta Commercial Bank’s acquisition of a Makati-based thrift bank.
Founded in 1992, the Taipei-based Yuanta Commercial Bank provides commercial banking services, primarily in Taiwan, operating through four segments: corporate finance, consumer finance, wealth management and financial trading.
In a text message to reporters, Espenilla said Yuanta Commercial Bank acquired the thrift bank Tong Yang Savings Bank Inc.
Tong Yang Savings Bank, Inc. is a wholly owned subsidiary of Yuanta Securities Korea Co., Ltd., a Korean entity that is majority owned by Yuanta Securities Asia Financial Services Ltd.
Tong Yang Savings Bank Inc. was formally registered in the Securities and Exchange Commission in August 1997 and was granted its thrift bank license by the BSP in October 1997. The bank started its commercial operations in November 2007.
Four other foreign banks had obtained central bank approval for expansion in the Philippines prior to Yuanta, namely the Industrial Bank of Korea, Taiwan’s Cathay United Bank, Japanese lender Sumitomo Mitsui Banking Corp. and Shinhan Bank, also of South Korea.