BSP in talks with Indonesia, Thailand on Asean banks
THE PHILIPPINES is eyeing bilateral deals with Indonesia and Thailand for the establishment of qualified Asean banks (QABs), Bangko Sentral ng Pilipinas (BSP) governor Amando M Tetangco Jr said.
In a recent speech, Tetangco said the central bank would initiate formal discussions with the Bank of Thailand and Indonesia’s Otoritas Jasa Keuangan with the end goal of signing agreements under the Asean Banking Integration Framework (Abif).
Last week, top BSP officials met with their counterparts from the Bank of Thailand in the Thai city of Chiang Mai for bilateral discussions.
In March, the BSP and Bank Negara Malaysia (BNM) also agreed to allow three QABs from each country to operate under the Abif.
The BSP defined QABs as “strong and well-managed banks, headquartered in Asean and majority owned by Asean nationals”.
Abif, approved by Asean member-states in 2014, allows QABs to have greater access to neighbouring markets as well as more flexibility in their operations there.
According to the Asean website, “Abif recognises that some countries are more ready than others to further open up their banking sector … Hence, the current focus is on pursuing bilateral reciprocal arrangements”.
