Banks in the Philippines have emerged from previous scandals and are building a reputation as secure financial institutions. The Philippine banks provide more than just banking services; they also are a doorway into the economic culture of the Philippines. Philippines banks are often the focal point of rural communities and have been a major catalyst for increasing prosperity in agricultural communities.

Banks of the Philippines provide many incentives to foreign businesses in partnerships with Philippine businesses. The regulations of Philippines banking are complicated and legal counsel may be required in order to incorporate and establish business credentials. Banking with an international bank in Philippines could easily prove to be the wisest choice for newcomers.

1. Begin the transition by establishing a personal relationship with the staff at one of the commercial banks in the Philippines.

2. Expand your business relationship with Philippines banks by setting up an asset management account.

3. Use all services provided by Philippine banks to further integrate your Philippine business operations with the national economy.

Action Steps
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Work directly with management at banks of the Philippines

After establishing your business, work with a local financial adviser from one of the many Philippine commercial banks. Local bankers offer more than commercial banking services. Management of Philippine banks plays an important role in the community, and as such they can provide an extremely valuable level of personalized service to their customers.

I recommend: The Philippine Trust Company has been in business for nearly a hundred years. The bank built its reputation on providing personalized service to customers, along with the outstanding performance of their business banking management staff. Set up an account with the Philippine Bank of Communications and let it handle all your transactions through Philippines banks.

Utilize the full range of services offered by Philippine banks

Check a reputable Philippines bank directory and find out which banks in the Philippines offer the widest range of services. The services at many national level banks are competitive with most major Asian banks. The Philippine banking industry has grown increasingly more capable of handling foreign accounts and cater to foreign businesses seeking to enter the East Asian market.

I recommend: The Asia Trust Bank as well as the Allied Bank offer a full range of services to overseas investors. These banks will provide vital business information to their clients, such as specific regulations for various economic sectors.

Increase banking security when working with banks in the Philippines

Further insure the stability of your business banking in the Philippines by establishing an account with one of the global banks in Philippines. Major international banks can provide access to a Philippines online banking account, which can save a great deal of travel time and reduce office expenses in the Philippines.

I recommend: Global banking in the Philippines is made easier by the presence of American banks in the Philippines. International banks in the Philippines such as HSBC and Deutsche Bank offer their clientele access to the Philippine financial operations, in addition to the security that comes with their solid reputation as industry-leading international institutions.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Make local contacts a high priority when banking in the Philippines. A great deal of successful business in Asia is done through personal contacts.

When doing business in or with the Philippines, it is important to have a good knowledge about the system of banking in the Philippines. The Philippines are home to several hundred different banks -- universal and commercial banks (including several international banks with Philippine offices), rural banks, and credit unions, to name a few. These different banks cover a wide range of banking needs, but a detailed knowledge of banks in the Philippines is necessary to successfully take advantage of the system.

There are a variety of special issues that you need to address when dealing with Philippines banks. Banking in the Philippines varies greatly between urban and rural environments. Many rural banks of the Philippines function on the basis of mobile phone technology. Meanwhile, urban Philippine banks function similarly to major banks the world over, offering personal, business and corporate banking services through a wide variety of means. It is also important to keep in mind that foreigners involved in Philippines banking are subject to government restrictions on foreign investment. There is a great deal of global banking in the Philippines, but foreign investors and businesspeople need to research banking practices thoroughly before they begin.

Keep the following in mind when looking for banks in the Philippines:

1. Focus on banks that will meet your specific needs.

2. Remember that urban and commercial banks in the Philippines differ greatly from rural personal and development banking.

3. Comparing Philippines banks will help you find the right bank out of the many available.

4. Check out the many websites devoted to Philippines online banking.

Action Steps
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Gather general information about banking in the Philippines

Information about the banking industry and general financial state of the Philippines can be found from the Philippines government and from private sources.

I recommend: The Bank of the Philippine Islands offers a concise but detailed history of banking in the Philippines. Bangko Sentral ng Pilipinas, the central government bank of the Philippines, offers official information on exchange rates and interest, monetary policy, banking supervision, currency, etc. For further research, the bank also offers online publications about Philippine economics and banking.

Get background information on banks of the Philippines before doing business or making investments

There are several banking service companies and organizations that provide detailed information on Philippine banks and economics.

I recommend: The Bankers’ Institute of the Philippines, Inc. is a non-profit organization devoted to analyzing the banking industry in the Philippines. For up-to-date banking news about the Philippines, EIN News hosts a website with Philippine banking information from 40,000 news services. The website requires membership but offers a free, one-week trial.

Research particular banks in order to know which banks will best suit your needs

With hundreds of banks of many different types, it is important to make a knowledgeable choice before banking in the Philippines.

I recommend: Allo Expat offers a comprehensive Philippines bank directory of 51 of the largest banks with addresses and website links. Individual bank websites are also useful, especially for the largest banks. The Bank of the Philippine Islands has a comprehensive and easily-navigated website. For an example of an international bank in Philippines, Citibank-Philippines maintains a site for all banking services.

Find out about restrictions on foreign banking and investing in the Philippines

The Philippines have strict regulations about foreign investment, so it is important to know the rules before starting a business venture there or involving a Phillipines company.

I recommend: The Philippine government hosts a forum in which issues of foreign banking in the Philippines are discussed. Also, articles about money transfer and investment regulations are available.

Banks of the Philippines have all the general services provided by American banks, as well as some targeted banking services such as rural and microenterprise banking. Philippine banks are well regulated and have a substantial assets available for commercial lending.

Banking in the Philippines requires familiarity with the political situation and projected outlook for stability. Philippines banks have suffered in the past due to some governmental mismanagement of the industry, and because of this banks of the Philippines are seen as somewhat of a risk by some businesses.

Commercial banking in the Philippines with America and other western countries has a longer history than many other countries in the regions. Any international bank in Philippines will conduct business in both Filipino and English, which are the official languages of the country. A banks in the Philippines industry overview includes US banks that do business in there.

1. Start banking in the Philippines by depositing a small account in one of the Philippine commercial banks.

2. Work face-to-face with large Philippine banks and overseas commercial banks in the Philippines.

3. Transfer funds from one of the many global banks in Philippines to one of the government insured Philippines banks.

Action Steps
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Begin banking in the Philippines with a simple business account

Banks in the Philippines require commercial businesses to register with the appropriate government offices and provide detailed information on the principles involved in the business. The outlook for Philippines banking has improved since the government introduced stricter regulations in 2007. The people of the Philippines have one of the lowest national averages of loan-to-deposit ratios, so the government has invested heavily in providing the banks with sufficient cash reserves.

I recommend: The Philippine National Bank can provide all the services a commercial business would require, including: corporate cash management, foreign exchange and corporate trust services. The Bank of the Philippine Islands can take care of all your corporate banking needs.

Travel to meet with officials of Philippine banks

Before doing extensive banking in the Philippines, it would be wise to meet in person with banking officials. Successful global banking in the Philippines demands a level of familiarity with the country's culture and traditions. If your business will conduct a large amount of business in the Philippines, it would be a very good idea to have several staff members trained to speak Filipino. There are over 170 languages spoken across the island nation, but English and Filipino are the key languages of business.

I recommend: The Union Bank is one of the better banks for business in the Philippines. The Development Bank of the Philippines enjoys a fine reputation for service and management. Staff from these two banks will provide great service and make financial arrangements to your satisfaction.

Work with one of the international banks of the Philippines

American businesses have a long history with Philippine banks. For over a century American businesses have invested there. The Philippines online banking was established with American expertise. Foreign banks have been allowed to provide more extensive banking services in recent years.

I recommend: Consult a Philippines bank directory to find the overseas offices of international banks, including Standard Chartered Bank. Citibank can also arrange for the transfer of funds from its offices in the US to its offices in the Philippines.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Hire a contact person with native Filipino language skills, who is very familiar with banks in the Philippines and has numerous personal contacts in the banking industry.

Banking in the Philippines, like most foreign countries, presents its own set of unique opportunities and challenges. In order to take advantage of the opportunities and overcome the challenges, it's important to know some specifics of the banking industry. One way to do this is to become familiar with some key terms. While this won't guarantee success, it will provide you with a solid knowledge base on which to build a winning business strategy when banking in the Philippines. Here are some key terms to consider:

Action Steps
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Asian Development Bank or ADB

The Asian Development Bank is a financial institution headquartered in Manila, with 27 field offices. When banking in the Philippines, it can help to contact them to find out about the current economic conditions in the country.

I recommend: For a detailed overview of the financial entity, go to the Asian Development Bank website.

Central Bank of the Philippines

The Central Bank of the Philippines' primary charter when it was formed in 1948 was to provide monetary stability to the region.

I recommend: See this page from the Library of Congress about the Central Bank and the monetary policy of the Philippines.

Bangko Sentral ng Pilipinas, BSP

The BSP, or Bangko Sentral ng Pilipinas, is the central bank of the Republic of the Philippines. It has been in business since 1993 and is the Philippines' main monetary authority.

I recommend: View the overview of the BSP, where you can read how this bank is organized and governed.

Peso

The peso is the national currency of the Philippines. Before transferring money to a bank in the Philippines, It's important to know the current exchange rate.

I recommend: Assess the information at Convert World for the current conversion and definition of the Philippine Peso.

Economic and Financial Learning Center (EFLC)

The Economic and Financial Learning Center was opened in Manila in 2009 to give the public information on economic and financial affairs in the Philippines.

I recommend: See this page from the Phillipine Information Agency on the EFLC.

Bank of the Philippine Islands, BPI

The Bank of the Philippine Islands was the first bank in the islands to issue paper money, in 1852. It became a commercial bank in 1982 and introduced BPI Direct Savings Bank, an Internet bank in 2000 .

I recommend: Visit the website of BPI.