The Bangko Sentral ng Pilipinas (BSP) and the Bank of Thailand (BoT) signed a Letter of Intent (LOI) to begin bilateral discussions in line with the ASEAN Banking Integration Framework (ABIF). This was done at a ceremony on April 6 at Mactan Island, Cebu.
The document was signed by BSP Governor Amando M. Tetangco, Jr. and BoT Governor Veerathai Santiprabhob.
Governor Tetangco pointed out that “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. The bilateral discussion allows us to explore opportunities as well as common interests and the BSP looks forward to having vibrant discussions with our colleagues from the BoT.”
ABIF advances the underlying principles governing QABs which will be the vehicle for the achievement of regional banking integration. Under the framework, QABs must meet global banking standards as well as the prudential regulations of both host and home countries.
ABIF enjoins each ASEAN-5 country to hammer out at least one bilateral agreement with another ASEAN-5 country by 2018. ASEAN-5 refers to Indonesia, Malaysia, Philippines, Singapore and Thailand. The framework also targets the conclusion or near conclusion of at least one bilateral agreement for each of the ten ASEAN members by 2020.