Monday, September 15, 2014

REPUBLIC ACT NO. 10641 - AN ACT ALLOWING THE FULL ENTRY OF FOREIGN BANKS IN THE PHILIPPINES, AMENDING FOR THE PURPOSE REPUBLIC ACT 7721

Section 1. Section 2 of Republic Act No. 7721 is hereby amended to read as follows:

Sec. 2. Modes of Entry. - The Monetary Board may authorize foreign banks to operate in the Philippine Banking System through any one of the following modes of entry: (i) by acquiring, purchasing or owning up to one hundred percent (100%) of the voting stock of an existing bank; (ii) by investing up to one hundred percent of the voting stock of a new banking subsidiary incorporated under the laws of the Philippines, or (iii) by establishing branches with full banking authority.

Thus reads and provides a newly-drawn and approved economic provision in conjunction with the banking system in this Country – a provision which in effect openly admits and officially affirms the following pitiful economic realities in the Philippines, notwithstanding all interesting elocutions and rhetorical counterclaims of the present administration.

a. The bluntly and formally admitted sad but standing reality of bankruptcy in the Country such that foreigners are now allowed and even enticed to own no less than 100% of any or even all local banks in the Philippines.

b. The consequent right of the said foreigners owning 100% of such local banks to fully manage – buy, sell, trade – the latter's investment in the mineral resources of the Country, the power industry in particular.

c. The invitation to foreign capital to establish and own as many foreign banks in the Country as they want, with likewise 100% foreign ownership and wherefore equally 100% foreign management.

Question: What will still be amended in the economic provisions of the Philippine Constitution?

Question: Who will ultimately manage business in the Philippines, minerals and power well-included?

Question: What else will the present administration alienate to foreigners within less that two years – if not more six years?