QuestionsQuestions (BSP CIRCULAR LETTER)
They were “granted authorities to operate each a branch with full banking authority.” In other words, BSP authorization was already issued allowing each bank to operate a branch that can perform banking functions with full authority.
It indicates that beyond being authorized, the foreign banks had begun actual banking operations as of the dates stated, meaning their branch operations are already functioning and subject to BSP supervision.
Four (4) foreign banks are listed: The Fuji Bank, Ltd.; The International Commercial Bank of China; International Nederlanden Bank; and Deutsche Bank.
Bank of Tokyo, Ltd. (April 3, 1995) and Korea Exchange Bank (June 1, 1995).
Fuji Bank, Ltd. — June 30, 1995; International Commercial Bank of China — July 4, 1995; International Nederlanden Bank — July 10, 1995; Deutsche Bank — July 14, 1995.
Adopted on 7 August 1995, signed (SGD.) by Gabriel C. Singson, Governor.
The adoption date (Aug. 7, 1995) reflects when BSP issued the notice, while “date opened” reflects when each branch started operations. For compliance, banks and stakeholders use the “date opened” to determine when the branch became operational and subject to BSP oversight, whereas the circular’s adoption date indicates when official notice was disseminated.
It suggests that BSP approval precedes operations: foreign banks must be granted authority to operate a branch with full banking authority, and only then can they commence operations. BSP then issues notices confirming commencement.
It indicates the branch is not limited to a restricted activity; instead, it has authority comparable to full banking operations permitted by the BSP framework governing foreign bank branches.
Students should avoid assuming that the adoption date is the date each bank began operations. The circular’s adoption date is when BSP published the notice, while “Date Opened” is when each branch actually started operating.
BSP Circular Letter dated August 07, 1995; Title/subject: Foreign Banks Allowed to Operate; reference to NAR VOL. 6 NO. 3 / July–September 1995; adopting date 7 August 1995; signed by BSP Governor Gabriel C. Singson.
Six (6) in total: Bank of Tokyo, Ltd.; Korea Exchange Bank; Fuji Bank, Ltd.; International Commercial Bank of China; International Nederlanden Bank; and Deutsche Bank.
It implies the circular is meant to guide compliance and inform stakeholders about regulatory developments; it is not merely descriptive but designed to ensure regulated parties understand the BSP-approved operational status of foreign bank branches.