Bank Negara signs pacts with Philippine, Thai counterparts

PETALING JAYA: Bank Negara Malaysia (BNM) has signed a declaration of conclusion of negotiations with Bangko Sentral ng Pilipinas under the Asean Banking Integration Framework.

The central bank said the negotiations covered the number of Qualified Asean Banks (QABs) to operate in each other’s countries, form of presence and operational flexibilities in the scope of banking activities, branches and other forms of delivery channels.

“With the conclusion of the negotiations, both BNM and Bangko Sentral ng Pilipinas look forward to the presence of each other’s QABs to facilitate regional cross-border trade and investment,” it noted.

The declaration was signed by BNM governor Datuk Muhammad Ibrahim and Philippine central bank governor Amando M. Tetangco Jr on the sidelines of the third Asean Finance Ministers’ and Governors’ Meeting in Mactan, Cebu Island, the Philippines.

In a separate statement BNM said it has signed a memorandum of understanding (MoU) with Bank of Thailand on banking supervision and financial development cooperation.

“To support deepening regional integration and expanding trade and investment linkages between the two countries, cross-border banking activities have increasingly significant roles in the financial system.

“In recognition of these important financial developments, the MoU reflects enhanced cooperation between the two authorities to ensure financial stability and sustainable financial development,” the central banks said in a joint statement.

In addition, BNM said the MoU provides a strong basis for further development of effective supervisory systems in accordance with principles set out in the Basel Core Principles.

The MoU outlined areas of supervisory and developmental cooperation, including cross-border and on-site supervision, market conduct supervision, consumer protection, financial inclusion, financial literacy as well as combatting financial crime, it added.