Reciprocal Banking Agreement Inked with PhilippinesThe state-owned Bank of China will set up a branch in the Philippines while a top Philippine bank will open a branch in China under a bilateral banking pact, a presidential palace statement said in Manila Thursday.Philippine President Joseph Estrada, who is on a state visit to China, was quoted as saying the reciprocal arrangement between Bank of China and Metropolitan Bank and Trust Co. (Metrobank) would boost bilateral trade, investment and tourism. Under the agreement, Metrobank, owned by ethnic Chinese tycoon George Ty, will open a branch in Shanghai while Bank of China will set up operations in Manila, the statement said. Thirteen foreign banks have already set up full operations in the Philippines which began liberalising its banking sector in 1994. Under local laws, foreign banks can operate here only if their home countries allow Philippine banks to set up branches. Estrada urged Chinese Premier Zhu Rongji to allow a second Philippine bank to open up a branch in either Shanghai or Beijing, the palace statement said. He wanted Allied Bank, which lost out to Metrobank for the maiden operation in China, to set up a branch in Shanghai or Beijing, the statement said. Allied Bank, owned by Estrada's close friend ethnic Chinese tycoon Lucio Tan, was a frontrunner in the China banking licence race. The Chinese government was said to have picked Metrobank over Allied Bank because of its larger assets and earlier application. Philippine Foreign Secretary Domingo Sizaon was quoted as saying in local news reports that Manila was willing to offer another Chinese bank a chance to open up a branch in the Philippines if Allied Bank was given a licence in China. |
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