BNM, Bank of Thailand to cooperate on bank supervision
07 Apr 2017, 10:04 am
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This article first appeared in The Edge Financial Daily, on April 7, 2017.

 

KUALA LUMPUR: Bank Negara Malaysia (BNM) and Bank of Thailand yesterday signed a memorandum of understanding (MoU) to effectively supervise banks in both countries for sustainable financial development.

In a joint statement, the central banks said the MoU outlined cooperation areas including market conduct supervision, consumer protection and financial inclusion.

“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.

“It also provides a strong basis for further development of effective supervisory systems in accordance with principles set out in the Basel Core Principles for Effective Banking Supervision,” the central banks said.

Separately, BNM and the central bank of the Philippines, Bangko Sentral Ng Pilipinas, inked a declaration of conclusion of negotiations under the Asean Banking Integration Framework (ABIF) on the same day on the sidelines of the third Asean Finance Ministers’ and Governors’ Meeting on Mactan, Cebu Island in the Philippines.

“The negotiations cover, among others, 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. These commitments form part of the Asean Framework Agreement on Services to be inscribed in the respective countries’ Schedules of Specific Commitments, and will come into effect upon each country’s domestic approval and ratification process,” BNM said in another statement.

It was BNM’s second ABIF arrangement following the bilateral agreement with Otoritas Jasa Keuangan, Indonesia’s Financial Services Authority, last August.

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