Foreign Banks of the

Philippines
Peter Lancelot Co
4LM1
 What is a Foreign Bank?
Foreign Banks are banks that have branches in the United States
and main headquarters in another country. Foreign banks are
subject to the banking regulations of the home country and those
from their home country or main headquarters.
A bank may choose to open foreign bank branches to meet the
needs of multinational corporate customers and to accommodate
the needs of their clients abroad.
Foreign bank entries can improve financial intermediation by
increasing the competition in the market, improving the stability of
banks and enhancing the banking sector efficiency by participating
in the domestic banking system by establishing foreign
subsidiaries, foreign branches or taking over existing domestic
banks and other established foreign banks here in the Philippines.
What are the foreign banks in
the Philippines?
 REPUBLIC ACT NO. 10641
In November 2014, the BSP approved Republic Act
10641 as an amendment to RA 7721, which eases
regulations and allows for the further entry of Foreign
Banks into the country.
In addition, the law also permits the removal of the cap
on the number of banks to operate here in the country.
The new law also allows Foreign Banks to acquire up
to 100 percent of the voting stock of an existing
domestic bank and it allows Foreign Banks to control
up to a combined 40 percent of the total assets of the
banking system.
 ADVANTAGES AND CHALLENGES OF
FOREIGN BANKS
ADVANTAGES

Cross border lending and investments.

Possibly increased overall domestic credit/lending.
OFW remittance costs
Product offerings.
International Exposure
 ADVANTAGES AND CHALLENGES
OF FOREIGN BANKS
CHALLENGES

ROPA (Real and Other Properties Acquired).

Branch Networks.
The currency in the domestic country may become
volatile if not managed properly.
 Functions of A Foreign Bank
Link the clients that deposits and withdraws from the Philippines to other parts
of the world that they have branches in.

Foreign bank helps the Filipino people and their businesses to be engaged in
international trade and finance.

Foreign banks accept deposits from savers and lend to borrowers located in
different countries and from the Philippines.

Foreign banks lower the transaction costs by reducing the information costs,
lowering the risk of investments, and increasing the liquidity of financial
markets.

Liquidity is the strategic way of converting the assets to local currency.

Currencies and bank accounts are the most liquid, while material goods like
houses and cars, are the least liquid assets. Finally, foreign banks stimulate
financial innovation by creating new financial instruments and new innovative
products.
 About CitiBank
Citibank was founded in 1812 and the former name was, the City
Bank of New York then later became First National City Bank of
New York until it became its current name. Their largest market is
in United States having 983 branches and they have expanded
across the globe. In addition to standard banking transactions,
Citibank also provides insurance, credit cards, and investment
products. Their online services products are among the most
successful in the field of banking.
They have first established a branch in Manila dating back 1902
when the International Banking Corporation built an office here.
Today, CitiBank is the largest foreign bank in the Philippines in
terms of assets, revenues and profitability. Citibank provides
services like corporate banking, treasury, transactional banking
and consumer banking services.
 About CitiBank
Citi is the leading global bank and caters 200 million customer
accounts and does business in more than 160 countries. Citi
provides consumers, corporations, governments and institutions
with a broad range of financial products and services, including
consumer banking and credit, corporate and investment banking,
securities brokerage, transaction services, and wealth
management.
CitiBank also offers full suite of products and services going from
day-to-day working capital and treasury management solutions to
financial advisory and long term debt and equity capital raising,
when in fact, Citis corporate and investment banking plans has
helped the local clients grow while maintaining those overseas
clients intact and accommodated. They also help foreign business
to be able to expand here in the Philippines through its partner
Citicorp Capital Philippines Inc.
 Citibank in the Philippines leads on top of other
commercial banks in terms of consumer banking. Citi
operates full-service Citibank branches in key locations
in Metro Manila and Metro Cebu. It is the only foreign
bank in the Philippines to be included in the countrys
top 10 list of performing banks.
 CitiBanks Value Proposition: A Mission of
Enabling Growth and Progress
The CitiBanks Mission is to serve as leverage for their clients by
way of offering their clients financial services that can enable
growth and economic progress.
Citibank protects their clients money while making sure they can
also spend it at their everyday transactions in improving their lives.
Citibank also gives advises to the people on how to invest on
future financial needs and help their clients in buying securities
such as bonds and stocks.
They also have strong ties with companies as Citibank helps these
companies with their everyday operations, whether be it in needing
of capital to kick-start their business, or to make payroll for their
employees or even on exporting their goods worldwide.
 CitiBank Products
1. Structured Notes
Structured notes are financial instruments, specially designed
to take advantage of market opportunities. These products are
usually structured along defined themes and are normally
denominated in US Dollar, Euro and British Pound.
2. Fixed Income Securities (Bonds)
Fixed Income Securities are ideal for investors who want a
regular income through coupon payment, as well as for
investors looking for an opportunity for capital appreciation
through the sale of securities before maturity if the price moves
up.
 3. Mutual Funds

As a Citibank customer, you can choose from a variety of Mutual Funds and alternate
investment options. These funds are selected to suit a variety of investment objectives and
risk profiles.

4. Islamic Investment options

If you are seeking Shariah compliant investments, we have a comprehensive range of

products to meet your needs

5. Citibank Financial Planning Services

-Children's Education Plans

-Retirement Plans

-Wealth Accumulation Plans

-Protection Plan
 Consumer Banking
Business
CREDIT CARDS
Citi is the world's largest credit card issuer, with more than 138
million accounts, $363.9 billion in annual purchase sales and
$133.2 billion in average receivables across Citi Branded
Cards and Citi Retail Services.

Citi Branded Cards continued to simplify and standardize its

global product portfolio, further reducing the number of product
variations by 61 percent and rolling out common global product
platforms that increase product competitiveness while allowing
for local customization
 Manage Your account Services:
ATM/Debit Card Easy Access of the cards even abroad
Online Bank Statements View your account online anywhere, anytime
Account Linking That's because you can access your accounts in one place
and transfer funds between linked accounts. Plus, linking can help you avoid
monthly fees and enjoy relationship pricing.

Account Alertsupdates about your bank and credit card accounts by text or
email.

Online Deposit Move your money without moving a musclecertain checks

can go directly into your account.

Auto Save Set up automatic transfers from your checking account to your
savings or money market account.
 Move your Money Services:
Online Bills Payment Welcome to no stamps, no check writing and no mailing this is
the new innovation of banking.

eBills With the convenient eBills service, you can receive, view and manage your bills
right where you pay them.

Inter- Institution Transfers make online transfers between your Citibank accounts and
your accounts at other banks, brokerages and credit unions in the US.

Popmoney the new way to "Pay Other People" directly from your Citibank account.

Wire Transfers a convenient way to send money from your Citibank checking, savings
or money market2 account to non-Citi accounts in the US. and internationally.

CitiBank Global Transfers This service lets you transfer money from your Citibank
account to other Citibank accounts in the US. and these countries
 Protection Services
Citi Identity Theft Solutions = if you're ever a victim of identity
theft Citibank have a team of specialists dedicated to help you re-
establish your credit and reclaim your identity.
Online & Mobile Fraud Protection This free service helps to
cover you against loss in the unlikely event there are unauthorized
electronic funds transfers in your Citibank deposit accounts.
Overdraft Protection Apply for the overdraft protection you need
to make bounced checks a thing of the past. If approved, you can
have a revolving line of credit to use whenever you need cash.
Safety Check transfers funds to your checking account from your
linked savings or money market account in the event your
checking account is ever overdrawn
 Global Client Banking
Travel Abroad
Buying Properties in the US
Relocate
Moving Money Internationally
 CitiBank Solutions
Financing & Advisory

Financing infrastructure modernization is challenging. Be that as it may, robust financing

methodology helps a city execute basic foundation ventures. Citi offers master counsel
on asset optimization, alternative sources of funds and utilizing income streams as an
adaptable, productive and ease method for raising capital.

Efficiency Optimization

Improving the operational efficiency of a city is difficult. But the right solutions can
streamline processes and deliver cost savings. Citi offers a wide range of e-Government
tools to improve efficiency, address challenges such as fragmentation across agencies,
centralize processes in shared service centers and optimize cash flows.

Digitization of Services

Digital Services enable citizens to pay for city services conveniently using their mobile
phones or touch screen payment terminals. Technology can also improve citizens
access to information, improving transport efficiency and reducing frustration
Ms. Christine Manalaysay
Manager- Sales Department
A message to Sir Alain
Thank You