Philippine President Benigno Aquino has signed into law a bill removing restrictions on foreign ownership.
In a briefing, Presidential Communications Secretary Herminio "Sonny" Coloma Jr. said the move was done in response to the growing interest of investors in the country.
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"The new law will help boost the financial sector which, in turn, will help fuel the economy," he added.
The act replaces a cap of 60% on foreign ownership of Philippine lenders.
The president’s move also abolishes restrictions that have allowed only 10 foreign banks to have fully-owned operations in the country.
The move is in line with the government’s push to strengthen the country’s capital and financial markets.
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By GlobalDataThe law comes ahead of an economic integration of South-East Asian nations in 2015, brings the Philippines in line with countries such as Australia and Japan which allow banks to be wholly owned by foreign firms.
However, a group of bank employees in the Philippines has expressed opposition to the government circular saying full entry of foreign banks will have a negative effect on labor and the banking public.
The group also fears that move will lead to layoffs and salary downgrades.
