BANGKOK – The central banks of Malaysia and Thailand are open for banks in both countries to apply to be Qualified Asean Banks (QAB) following their bilateral arrangement under the Asean Banking Integration Framework, Reuters reported.
The qualified banks are envisioned to help increase trade and investment within Southeast Asia, in accordance with the Asean Economic Community Blueprint 2025, the 10-member bloc’s plan to create an integrated economy, both central banks said in a joint statement today.
This is pursuant to a bilateral arrangement under the Asean Banking Integration Framework (ABIF) between Bank Negara Malaysia (BNM) and the Bank of Thailand (BoT), Bernama reported.
According to a joint statement by BNM and BoT today, QABs are envisioned to facilitate greater intra-Asean trade and investment in the region, in accordance with the Asean Economic Community Blueprint 2025 that aims to create an integrated and highly cohesive Asean economy.
“To ensure the financial stability of both countries, a QAB candidate – whether a new entrant or an existing bank in the host country – must be a strong and well-managed bank that has its interest endorsed by the home country’s regulator and comply with the host country’s prudential requirements.
“A successful QAB candidate will enjoy market access and operational flexibilities accorded under the bilateral arrangement,” it said.
The statement said the bilateral arrangement and its commitments form part of the Asean Framework Agreement on Services (AFAS), and both central banks reckoned that the bilateral arrangement is a significant milestone in the journey towards Asean financial integration as envisioned under the ABIF initiative.
Recently, the BoT and BNM had also launched the Cross-Border QR Payment Linkage between Thailand and Malaysia, it said.
BNM governor Datuk Nor Shamsiah Mohd Yunus said the bilateral arrangement signifies the strengthening of economic ties between Malaysia and Thailand, which is set to benefit the people of both countries as they will be able to enjoy better banking convenience and access to a wider range of banking products.
“We are taking great strides towards creating an integrated and cohesive Asean economy, and we are confident that the QAB arrangement will foster more business opportunities and economic activities between the two countries to facilitate both our economic recoveries amidst the ongoing pandemic,” she said.
BoT governor Sethaput Suthiwartnarueput said the bilateral QAB arrangement marks another important milestone for the long-standing partnership between the two countries, as well as Asean’s efforts towards deeper regional financial integration.
He said the arrangement will bring about a wider range of high-quality financial products that will better serve the needs of businesses and consumers in both countries.
“It is our aspiration to see QAB arrangements pave the way for further financial cooperation among Asean members as the region embraces new financial innovations,” he said. – Agencies, September 14, 2021
