The Philippines to Improve Its Banking System

Updated on Wednesday 30th May 2018

The Philippines has a strong position among Asian countries in terms of banking, according to the Filipino Central Bank (BSP), however the government plans to strengthen this position more in the years to come by creating and enabling various reforms. One of these reforms refers to aligning with international standards and practices. Our company formation agents in the Philippines can assist foreign investors who want to start businesses in the financial sector.

The BSP to streamline licensing procedures for Philippines banks

Even if the Philippines banking system is one of the strongest and most stable systems in the region, the National Bank wants to improve this position by enabling certain reforms which will help companies in the financial sector to comply with the IFRS (International Financial Reporting Standards).

Also, the government plans on simplifying the licensing procedures for those who want to operate in the financial sector in the Philippines in order to open the financial services market to other players and thus creating a more competitive environment.

Among the most prolific sub-sectors of the financial industry in the Philippines are fintech and cryptocurrency and our local consultants can help investors who want to open companies in these branches.

The Philippines to adhere to international regulations

On the list of the government are also several plans related to improving the corporate governance regulations, as well as enabling new methods of offering financial services and solutions to the customers of local banks. Among these, the creation of programs which sustain the offering of digital banking services are a top priority.

The Central Bank is also working on the improvement of the standards through which Philippines banks comply with the Basel Accord, through which loans are cheaper and less risky. Banks would also comply with new regulations which provide for enhanced protection of those applying for credit cards.

According to the National Bank, Filipino banks are expected to perform quite well this year as their revenues will increase based on a growing need of loans.
If you want to start a business in the financial sector in this country, please contact our Philippines company formation specialists.