BoT fi­nal­is­ing deal on QAB cri­te­ria with Bank Ne­gara

The Star Malaysia - StarBiz - - News -

BANGKOK: The Bank of Thai­land (BoT) ex­pects to fi­nalise a deal with Bank Ne­gara on Qual­i­fied Asean Bank­ing (QAB) cri­te­ria soon, paving the way for indige­nous banks in one coun­try to op­er­ate in the other and re­ceive treat­ment as lo­cal banks.

Ac­cord­ing to BoT gover­nor Veerathai San­tiprab­hob, it was in the process of ne­go­ti­at­ing with Indonesia’s Fi­nan­cial Ser­vices Au­thor­ity and the Cen­tral Bank of Myan­mar on the es­tab­lish­ment of QAB.

“We are ne­go­ti­at­ing with three cen­tral banks but the agree­ment with Malaysia should soon be fi­nalised,” he was quoted as say­ing by the lo­cal me­dia here yes­ter­day.

BoT signed its first heads of agree­ment on a re­cip­ro­cal bi­lat­eral ar­range­ment re­gard­ing QAB with Bank Ne­gara on March 14 last year, he added.

The bi­lat­eral ar­range­ment is part of an um­brella agree­ment called the Asean bank­ing in­te­gra­tion frame­work, which pro­vides greater ac­cess for indige­nous Asean banks to other mem­ber coun­tries’ bank­ing sec­tor as well as op­er­a­tional flex­i­bil­ity on a re­cip­ro­cal ba­sis.

Two Malaysian fi­nan­cial in­stitu- tions CIMB Group and RHB Bank have bank­ing op­er­a­tions in Thai­land while Bangkok Bank’s wholly-owned sub­sidiary, Bangkok Bank Bhd, op­er­ates in Malaysia.

Veerathai said Asean cen­tral banks shared a com­mon goal of pro­mot­ing fi­nan­cial in­te­gra­tion among the re­gional group­ing.

“We see in­te­gra­tion in terms of in­vest­ment and trade be­tween Thai com­pa­nies and neigh­bour­ing coun­tries con­tin­u­ing to strengthen. Thai fi­nan­cial in­sti­tu­tions also have ex­panded their op­er­a­tions into neigh­bour­ing coun­tries,” he said. — Ber­nama

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.