BSP deputy governor Nestor Espenilla said initially Cathay will have to put up a capital equivalent to PHP2.2bn ($49.48m) in order to comply with the minimum requirement for a commercial bank license.
Cathay Financial Holdings’ subsidiary Cathay United Bank is expected to commence operations in the third quarter of 2015.
Cathay’s application was approved by the central bank as its financial condition is sound with good management as well as the positive benefits it offers to the economy in the country.
Several other banks including Taiwan Cooperative Bank, Woori Bank and Busan Bank are also planning to open branches or expand their presence in the Philippines.
South Korea’s Shinhan International and Japan’s Sumitomo Mitsui Financial Group unit have also earlier secured approvals to establish branches in the country.
Formerly, the United World Chinese Commercial Bank, the commercial bank Cathay United Bank has a capital value of TW$52bn (about $1.7bn) and over 160 bank branches located throughout the country.
Headquartered in the Cathay Financial Center, the bank has 165 branches throughout Taiwan and provides retail and corporate banking as well as wealth management services.
At present, the bank has six overseas branches and five representative offices located in China, South East Asia, and the US.
