PH, Thai, Malaysia central banks sign agreements on integration
CEBU - The central banks of the Philippines, Thailand and Malaysia moved a step closer to integrating the banking systems of the three countries.
Bangko Sentral ng Pilipinas ( BSP) signed agreements with Bank Negara Malaysia ( BNM) and Bank of Thailand (BOT) today in Mactan, Cebu during the ASEAN ( Association of Southeast Asian Nations) Finance Ministers meeting.
BSP governor Amando M. Tetangco, Jr. and BNM governor Muhammad bin Ibrahim signed the Declaration of Conclusion of Negotiations ( DCN) on the entry of Qualified ASEAN Banks ( QABs) between the two countries.
The agreement opens the door for QABs, or strong and well- managed banks, headquartered in ASEAN and majority- owned by ASEAN nationals, to set up shop in the other’s territory and be treated like domestic banks.
“Finalizing this agreement between the BSP and BNM is an important step towards achieving the goal of the ASEAN Banking Integration Framework( ABIF) to enhance intra-regional trade and inclusive growth through QABs operating in host ASEAN jurisdictions,” said Tetangco.
Te tang co and Bo T governor Veera thai Santiprabhob also signed a Letter of Intent (LOI) to begin bilateral discussions in line with the ABIF.
“The bilateral discussion allows us to explore opportunities as well as common interests and the BSP looks forward to having vibrant discussions with our colleagues from the BOT,” Tetangco said.
ABIF en joins each ASEAN-5 country to hammer out at least one bilateral agreement with another ASEAN-5 country by 2018.
A SEAN -5 refers to Indonesia, Malaysia, Philippines, Singapore and Thailand.
The framework also targets the conclusion or near conclusion of at least one bilateral agreement for each of the ten ASEAN
members by 2020.