Philippine E-Journals

The Phenomena of Bank Mergers

Felixberto C. Condeza | Revenio C. Jalagat Jr.

Discipline: Economics, Business, Finance

 

Abstract:

The issue on merging, consolidation, and other related endeavor is not new to the banking industry. In fact, Republic Act 7721 series of 1994 known as “The Act Liberalizing the Entry and Scope of Foreign Banks in the Philippines” had limited to ten the number of new foreign banks that could open full-service branches in the Philippines. All ten licenses have been issued. These foreign banks are limited to putting up six branches each although the four foreign banks operating in the Philippines prior to 1948 were allowed to open up to six additional branches thereby having a foreign ownership of only 40%.