Transforming the Philippine financial industry towards the vision of an integrated ASEAN market
This year is the start of the ASEAN Economic Community (AEC). What does it actually mean for the financial service industry in the Philippines? What are the consequences for the industry and how do banks adapt to the changing regional business landscape?
The AEC and its Financial Integration Framework have served as a catalyst for the further opening up and consolidation of the Philippine banking sector. In the last year we have seen major changes to banking policy; Bangko Sentral ng Pilipinas (BSP) allowed the full entry of foreign banks into the Philippine market. In addition, the regulator has announced sharp increases to the minimum capital requirements for the range of bank licences, with some smaller private local banks facing a six-fold increase to maintain their universal banking licences.
With these measures, BSP is trying to encourage greater consolidation, particularly amongst small private local banks. Other promising initiatives from BSP and rural banks as well as several new start-ups, are being undertaken to tackle the problem of financial inclusion of the unbanked in difficult geographies with creative digital solutions
In its fifth consecutive year, The Asian Banker’s annual Philippine International Banking Convention (PIBC) will highlight innovative developments taking place in the Philippine banking landscape and display best practice examples from the region.
Key working sessions include: