PHL, Thailand to discuss opening of banking industry

LAPU-LAPU, CEBU – The central banks of the Philippines and Thailand signed on Thursday a letter of intent to start bilateral discussions on opening their respective banking industries to each other.

Signed by Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. and Bank of Thailand (BOT) Governor Veerathai Santiprabhob here, the agreement allows both countries to explore the possibility of allowing Qualified ASEAN Banks to set up shop in each other's markets.

“This document formalizes our intention to eventually craft the specific provisions that will govern the entry of Qualified ASEAN Banks (QABs) between our two countries,” Tetangco said.

“The bilateral discussion allows us to explore opportunities, as well as common, and the BSP looks forward to having vibrant discussions with our colleagues from the BOT,” he said.

The letter of intent is in line with the ASEAN Banking Integration Framework (ABIF), which lays the underlying principles governing QABs, ensuring global banking standards are followed, as well as prudential regulations of both the host and home countries.

The ABIF enjoins each ASEAN-5 member – Indonesia, Malaysia, Philippines, Singapore and Thailand – to hammer out at least one bilateral agreement with each other by 2018.

It targets the conclusion or near conclusion of at least one bilateral agreement for each of the 10 ASEAN members by 2020.

Earlier on Thursday, the BSP and Bank Negara Malaysia signed a bilateral agreement allowing the entry of QABs in each other's markets. — VDS, GMA News