Foreign Banks Full Entry Act

The Monetary Board evaluates foreign bank entry applications based on:
- Ensuring geographic representation and complementation within the banking industry.
- Considering strategic trade and investment relationships between the Philippines and the applicant’s country of incorporation.
- Assessing the foreign bank's demonstrated capacity, global reputation for financial innovation, and stability in a competitive environment.
- Confirming reciprocity rights for Philippine banks in the foreign bank's country.
- Considering the applicant’s willingness to fully share technology.
Only established, reputable, and financially sound foreign banks qualify for entry.
Foreign banks must be widely-owned and publicly listed unless government-owned and controlled.
The Monetary Board must ensure that at least 60% of banking system resources remain under majority Filipino ownership.

Locally Incorporated Subsidiaries:
- Must meet the minimum capital requirements prescribed for domestic banks of the same category.
Foreign Bank Branches:
- Must assign a permanent capital not less than the minimum required for domestic banks of the same category, remitted and converted into Philippine currency.
- May open up to five (5) sub-branches upon Monetary Board approval.
Branching privileges for locally incorporated subsidiaries align with domestic banks.

Section 6 of Republic Act No. 7721 is repealed, removing any provisions therein inconsistent with this Act.

Foreign banks operating in the Philippines enjoy the same functions, privileges, and are subject to the same limitations as Philippine banks of the same category.
Single borrower limits for foreign bank branches are aligned with those for domestic banks.
Foreign banks must guarantee employee rights under the Constitution.
Rights, privileges, or incentives granted to foreign banks must also be extended equally to Philippine banks.

Foreign banks authorized to operate in the Philippines can participate in foreclosure sales of real properties mortgaged to them.
They may take possession of such properties for up to five (5) years but cannot transfer title directly to themselves.
If the foreign bank becomes the winning bidder, it must transfer ownership to a qualified Philippine national within five years.
Failure to transfer within this period incurs a penalty of 0.5% per annum on the foreclosure price until transfer is completed.

Foreign banks already authorized prior to this Act may apply to change their mode of entry.
Foreign banks operating branches at the effective date retain the privilege to establish a limited number of sub-branches without previous location restrictions.
Existing foreign bank branches must comply with updated capital requirements within one year unless extended by the Monetary Board.

Relevant provisions of Republic Act No. 7653 (New Central Bank Act) and Republic Act No. 8791 (General Banking Law of 2000) shall apply to banks authorized under this Act, except where inconsistent.

The Monetary Board is empowered to issue rules and regulations necessary to implement this Act.
The Monetary Board must submit an annual report by May 30 to Congress and its Banking Committees detailing the implementation progress.
Implementing rules and regulations must be published in at least two newspapers of general circulation.

All laws, decrees, executive orders, proclamations, rules, regulations, or issuances inconsistent with this Act are repealed or modified accordingly.

This Act takes effect fifteen (15) days after publication in the Official Gazette or in at least two national newspapers of general circulation.