Another bank in the Philippines is preparing to offer commercial services, including foreign letters of credit (L/Cs) and bank guarantees.

Robinsons Bank will provide such services once it obtains the necessary license from the Bangko Sentral ng Pilipinas (BSP) to operate as a commercial bank.

Robinsons Bank

The license will allow the bank to offer a broader range of financial products, such as foreign L/Cs and bank guarantees as well as other trade finance instruments.

The bank is aiming to become one of the country's top 10 commercial banks.

More availability

The Philippines has made several moves to make international trade finance more available over the last year or so.

Last year, co-operative banks in the Philippines were authorised to open more branches and offer more services, including foreign L/Cs (DC World News, 24 February 2010).

That authorisation was issued by the BSP under new rules introduced in 2008 that already paved the way to allow the country's rural and thrift banks to conduct more L/C business.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.