Espenilla seeks framework for ASEAN financial markets

The Bangko Sentral ng Pilipinas (BSP) urged business leaders of the Association of Southeast Asian Nations (ASEAN) to build a framework that encourages cooperation and competition in the region’s financial markets.

At the ASEAN Business and Investment Summit (ABIS) yesterday, BSP Governor Nestor A. Espenilla Jr., said that financial regulators and the private sector should work together in building standards that protect consumers and businesses.

“I say to the business leaders, let’s engage. What I mean by that is at the national level, we need to create a framework of both cooperation and competition,” Espenilla said during a panel discussion.

“We need to be able to create those spaces where we work together, build standards that protect consumers, build standards that allow us or businesses to deal with one another on their terms,” he added.

The Philippine central bank chief also pointed out that the government and the private sector should build standards that protect the financial system, but at the same time allowing the creation of new products and innovation.

“I would broaden that cooperative national strategy… continuous partnership and engagement, there the government can play a role of change,” Espenilla said.

Meanwhile, Espenilla noted the challenges to ASEAN financing inclusion, citing the main problem is the lack of a strong policy framework.

“I think the main reason why it has taken us so long to tackle problem of financial inclusion is really the lack of a strong policy framework to address this issue. The approach was financial exclusion was a non-problem, it treated with apathy,” Espenilla said.

“When we started looking at the issue some two decades ago, there was very little to take a look