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.
Go deeper with GlobalData
"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.
The 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.
