BOT signs agreements with Philippine, Malaysian central banks
The Bank of Thailand (BOT) has signed a letter of intent to enter a bilateral agreement between Thailand and the Philippines under the Asean Banking Integration Framework (ABIF), and also signed a memorandum of understanding with Bank Negara Malaysia on banking supervision and financial-development cooperation.
BOT Governor Veerathai Santiprabhob and Amando M Tetangco Jr, governor of Bangko Sentral ng Pilipinas, signed the ABIF letter of intent yesterday in Cebu, Philippines.
The parties said the signing of this letter served as a solid foundation to enhance banking integration within Asean. In light of mutual benefits, greater market access and operational flexibility will be accorded to both countries on a reciprocal basis.
This is a significant step towards increasing business opportunities and further deepening economic and financial integration between Thailand and the Philippines, they said.
For more than 60 years, the Philippines and Thailand have had a close relationship, and enhancement of bilateral economic ties will further support greater trade opportunities, they said. The Philippine economy has been growing strongly, and Thailand is ranked as its second-largest Asean trading partner.
Furthermore, trade and investment between the two countries have been increasing in recent years. Banking integration will therefore be an impetus to enhancing economic development and enabling the two economies to reach their full potential, the central banks said.
Also yesterday, Veerathai and Muhammad bin Ibrahim, governor of Bank Negara Malaysia, signed an MoU 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. The MoU reflects enhanced cooperation between the two authorities to ensure financial stability and sustainable financial development.
It also provides a strong basis for further development of effective supervisory systems in accordance with the principles set out in the Basel Core Principles for Effective Banking Supervision.
The MoU outlines various areas of supervisory and developmental cooperation, including cross-border and on-site supervision, market conduct supervision, consumer protection, financial inclusion and financial literacy, as well as combating financial crime.
