ABSTRACT
More than 50 commercial banks currently operate in the Philippines. Of these, 17 are foreign-controlled, with 14 foreign branch banks and three majority foreign-owned domestically incorporated subsidiaries. Of the 17 foreign-controlled banks, 13 entered the Philippine market under May 1994 amendments to the country’s General Banking Act, which provided the first major opening for foreign banks since 1948. This market opening is beginning to improve overall banking services by increasing competition and efficiency and by encouraging the introduction of new products and technology. There are also 35 or so offshore banking units (OBUs) and foreign bank representatives in the Philippines.
