A term paper on the Hongkong and Shanghai Banking Corporation Ltd., Philippines

The banking industry is a dynamic industry that is fast changing, leaving players to adjust and survive to the ever changing landscape. The regional financial crisis that has befallen the whole world has prompted badly affected to introduce radical reforms that will enable their banking industries to be stronger and better to survive the times. With the aid of foreign capital, the major banks of the Asian region will be more competitive. Local banks are taking their cue from the developments in the Asian region and acknowledge that technology and globalization are transforming the way people bank. Technological investments are needed to satisfy more and more of customer\u27s demands which would require huge capital investments which has to be justified by economies of scale. As a result, banks are being pushed to grow bigger and more efficient. As a new era seems to be dawning on the banking industry in the Philippines and in Asia, the Bangko Sentral ng Pilipinas which plays a crucial role in steering the industry is important now more than ever. The policies that it will draw up and implement will have significant effect on the industry as well as present players. There are already rumors that one of the new BSP governor\u27s objectives to limit the number of active participants in the arena composed of five to six big, dominating banks controlling about 90 percent of the industry and the remaining ten percent will be for the smaller banks. Extend of government intervention would also have an effect in the overall picture in terms of T-Bill rates, revision of the General Banking Act and other government agencies that may pose external pressures to the banking industry