KUALA LUMPUR: CIMB Bank Bhd has received the approval to operate a branch in the Philippines from the Monetary Board of the country’s central bank.

In a statement, its parent company CIMB Group Holdings Bhd said the first retail branch was expected to be fully operational by the fourth quarter of next year.

Following the banking sector liberalisation in 2014, CIMB Bank has become the first Malaysian banking group to get Bangko Sentral ng Pilipinas’ approval  to operate under Republic Act No. 10641, an act that allows foreign banks to enter into the Philippines through the setting up of wholly-owned operations with full banking authority.

CIMB Group chief executive Tengku Datuk Seri Zafrul Aziz said: “We are delighted to have received the green light from the Bangko Sentral ng Pilipinas. The awaited missing link to complete CIMB’s Asean-10 footprint has now materialised.

“This will further propel CIMB into becoming the leading Asean universal bank, which will further strengthen our value proposition to customers.”

According to him, the Philippines offers tremendous opportunity with progressive regulation, attractive demographics, relatively lower banking penetration and good talent. 

“Our strategy will see us applying the best of our digital assets from across the region as well as working with key strategic partners locally,” added Tengku Zafrul.