BSP CIRCULAR LETTER

: The foreign banks were granted the authority to operate branches with full banking authority in the Philippines.
: The foreign banks are The Fuji Bank, Ltd., The International Commercial Bank of China, International Nederlanden Bank, and Deutsche Bank.
: The Fuji Bank, Ltd. commenced its banking operations on June 30, 1995.
: Operating a branch with full banking authority means that the foreign bank can perform a wide range of banking services similar to local banks, including deposit-taking, lending, and other banking operations.
: Deutsche Bank began its operations on July 14, 1995.
: Branches are extensions of the parent foreign bank and subject to BSP regulations but are not separate legal entities, which affects liabilities, capitalization, and regulatory supervision differently compared to subsidiaries.
: It allowed increased foreign participation in the banking sector, promoting competition and access to international banking services.
: The circular mentions that foreign banks were 'granted authorities,' implying a formal approval and licensing process by the BSP before commencing operations.
: It informs the public and stakeholders about new banking participants, ensuring transparency and compliance with BSP regulations.