Foreign Banks Full Entry Act

The Monetary Board evaluates:
- Geographic representation and complementation.
- Strategic trade and investment ties between the Philippines and the foreign bank's country.
- Applicant's financial soundness, global reputation, and capacity for innovation.
- Reciprocity rights for Philippine banks in the foreign bank's home country.
- Willingness to share technology.
Only established, reputable, and financially sound foreign banks are allowed entry.
Foreign banks must be widely owned and publicly listed unless government-owned.
At least 60% of resources in the banking system must be held by majority Filipino-owned domestic banks.

For subsidiaries locally incorporated, capital requirements match those for domestic banks of the same category.
Foreign bank branches must permanently assign capital not less than minimum required for domestic banks; this capital must be remitted in Philippine currency.
Foreign branches may open up to five sub-branches subject to approval.
Locally incorporated subsidiaries have the same branching privileges as domestic banks.

Foreign banks authorized under the Act have the same functions, privileges, and limitations as Philippine banks of the same category.
Single borrower’s limit for foreign branches aligned with domestic banks.
Foreign banks must respect employees’ constitutional rights.
Privileges granted to foreign banks are equally extended to Philippine banks under similar conditions.

Foreign banks may bid and participate in foreclosure sales of mortgaged real property.
They may take possession for up to five years but title transfer to foreign banks is prohibited.
Foreign banks must transfer properties to qualified Philippine nationals within five years.
Failure to transfer property results in a penalty of 0.5% per annum of foreclosure price until transfer.

Foreign banks may change modes of entry.
Branches may open additional sub-branches without prior location restrictions.
Existing branches must comply with capital requirements within one year unless extended.

New Central Bank Act and General Banking Law apply to foreign banks as long as not conflicting with this Act.

Monetary Board authorized to issue implementing rules.
Annual written reports on implementation to Congress and banking committees due by May 30.
Rules published in at least two newspapers of general circulation.

Act takes effect 15 days after publication in the Official Gazette or two national newspapers.