Banking

The Philippines’ well-capitalised banks enjoyed strong profit growth in 2011, and excess liquidity is the main worry at this point. Much-hyped PPP projects could be a fillip for the sector, providing an avenue for lending. A number of factors point to consolidation in the sector, include the labour intensiveness of Philippines banking, rising capital requirements, and merger incentives from the central bank. Foreign acquisitions are also possible, with the Malaysian lender CIMB a candidate to acquire one or more local banks. This section includes interviews with Amando M Tetangco Jr, Governor, Bangko Sentral ng Pilipinas (BSP); Aurelio Montinola, President, Bank of the Philippine Islands; and Florence Tarriela, Chairperson, Philippine National Bank (PNB).