Ten years after the passing of the Foreign Bank Liberalization Act (RA 7721) that allowed 10 foreign banks to enter the Philippine banking system, have the benefits expected of their entry such as an increased variety of financial services and adoption of new technologies, among others, already been felt? This Policy Notes claims that the impact of the benefits, as observed by the local bankers themselves in a survey conducted, have been slow in being felt. Moreover, a reverse "brain drain" seems to have taken place as local bank staff have been recruited by the foreign banks instead of the latter bringing along their own staff. The situation became one therefore where foreign banks with local managers compete against local banks with local managers. More in the Policy Notes.
