The Philippine banking sector was the focus of the most significant economic policy reform in 2014. In July, the President signed into law Republic Act 10641 permitting full and free access for foreign banks to the long-protected banking market, as long as 60 per cent of total banking assets remain in banks with majority Philippine ownership. At the moment, local banks control about 85 per cent of total banking assets, meaning that this aggregate limit on foreign penetration will not act as a true barrier for years to come. All branching limitations on foreign banks have also been removed. In october, the central bank redefined and raised the minimum paid-up capital requirements for all banking licences, leading to a six-fold increase for some universal banks and eight fold for some thrift banks. This pincer movement on local banks of greater foreign compe and higher paid up capital minimums, as were similar less drastie two decades ago, are aimed at forcing local bank consolidation and an improvement in consumer banking practices and products, Local banks, most tied to the leading diversified conglomerates that rule the Makati sky complained about the speed and scope of the reforms to little avai Today, the Philippines has the most liberal entry policies to its domestic commercial banking sector in Southeast Asia.