BDO Unibank, the largest bank in the Philippines with US$40 billion in assets, has taken steps to prepare for Asean integration as it seeks to become a significant player in the regional banking industry in the long term.
In an interview with The Asset, BDO chairperson Teresita Sy-Coson points out there are no common standards for regulation of the banking industry in the Asean, making it difficult for banks like BDO to map out their regional plans.
“In this region, there are no common standards of regulation, so each country has different policies which we still have to learn. There are also market studies we still have to do. Our focus is to establish our presence in countries where there are trade activities with the Philippines,” Sy-Coson says.
The bank has opened a marketing and representative office in Singapore and is in the process of opening similar offices in other markets in the region. It also has an existing bank branch in Hong Kong. BDO currently ranks 19th in the region in terms of size.
“We have also been more successful in the more developed countries like Korea and Japan. So we try to be in different areas of the region to look into the potential businesses coming into the Philippines,” Sy-Coson adds.
The bank has also been continuing to grow both organically and through mergers & acquisitions (M&A) in its home market. On December 24 2014, it announced the acquisition of One Network Bank (ONB), the largest rural bank in the Philippines for an undisclosed amount. This acquisition is part of BDO’s efforts to expand further into southern Philippines where ONB’s business is focused.
The Asean economic integration seeks to transform the region into a single market to strengthen the bloc’s competitiveness in the global markets.
