The Philippines has enacted a legislative change giving foreign banks more freedom to own local firms.

The Philippines has enacted legislation opening the door further to foreign banks, lifting a requirement where they were only able to own 60 per cent of a local firm in order to operate in the Asian country, media reports said. Banks can now own all of a local bank.

Legislation was signed into law at the weekend, according to the Philippines Inquirer at the weekend.

The Asian country is seen as having strong growth prospects – buoyed by a youthful population – although there are considerable inequalities. As reported in January this year, the number of ultra-high net worth individuals in the country is expected to increase drastically, according to a study by Q Intel Research. In the report titled "The Transformation of the Philippines Wealth Management Market 2014," Q Intel predicts that Philippines' ultra rich numbers will reach 302 by 2018, with Makati maintaining its financial hub status as foreign investment from Asian countries and the West continue to move in.

The change to the banking law in the Philippines is ahead of economic integration of Southeast Asian nations in 2015. Other countries in the region, such as Japan, allow banks to be wholly owned by foreign firms.