BANKING GIANT Credit Suisse is looking to set up a representative office in the Philippines, with the proposal expected to be decided on by the Bangko Sentral ng Pilipinas (BSP) over the next two months, a central bank official said.

BSP Deputy Governor Chuchi G. Fonacier confirmed that the Zurich-based financial firm has filed an application to open an office in Manila, which is currently in the “advanced” stage of processing and possible approval.

Credit Suisse is one of two live proposals currently being evaluated by the BSP from foreign banks eyeing to establish their presence in the Philippines, Ms. Fonacier said.

Representative offices allow foreign banks to set up liaison desks for Philippine-based clients to their branches in their home country, allowing them to promote their financial products and services as they lure potential clients to transact with their branches located abroad.

There are currently 11 foreign lenders which operate representative offices in Manila. These units cannot take deposits, hand out loans, or offer foreign exchange.

BSP Governor Nestor A. Espenilla previously said representative offices are usually the starting point for foreign lenders eyeing the Philippine market, serving as a litmus test for global banks in assessing business opportunities here.

The BSP evaluates applications to open representative offices by looking at the foreign bank’s liquidity and solvency positions; net worth and resources base; financial and credit standing in the global banking community; and its exposure in the Philippines, including the outstanding commercial and financial ties between Manila and the applicant bank’s home country.

The other foreign bank which has filed an application with the BSP wants to set up a full-service branch here, the central bank official said.

Ms. Fonacier previously noted that eight new foreign firms have “expressed interest” in entering the Philippines, although not all have filed formal applications before the regulator.

Ten international banks have entered the Philippines since the passage of Republic Act 10641 in 2014, which removed the cap on the number of offshore players which can do business in the country at a time.

Central bank officials have said that there has been growing interest among foreign banks to venture to the Philippine market as they seek to ride on upbeat economic activity, which has propelled the country as one of the fastest-growing in Asia.

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