spot_img
28.6 C
Philippines
Friday, March 29, 2024

Bank integration talks with Singapore pushed

- Advertisement -

BANGKO Sentral ng Pilipinas is looking forward to possible negotiations on the entry of banks between the Philippines and Singapore under the Asean Banking Integration Framework.

Outgoing Bangko Sentral Governor Amando Tetangco Jr., who will end his second six-year term on July 2, 2017, said he was expecting talks on the mutual entry of banks between the two Asean countries in the coming months.

“We have one with Malaysia, Thailand and Indonesia. We have not started yet (the negotiations) with Singapore but it might happen soon… Maybe over the next few months,” Tetangco told reporters in an interview.

Tetangco earlier said the entry of qualified Asean banks between neighboring Asean countries would further boost and investments in the region.

In April this year, Bangko Sentral and Bank Negara Malaysia signed in Cebu City the declaration of conclusion of negotiations between Malaysia and the Philippines. Sealing the declaration at the sidelines of the 12th Asean Finance Ministers Investors seminar were Tetangco and Bank Negara Governor Muhammad bin Ibrahim.

- Advertisement -

Tetangco said the signing came at the time of heightened uncertainties in the global financial markets which warranted a closer cooperation between the two countries.

Bangko Sentral and Bank of Thailand also signed a letter of intent to begin bilateral talks on qualified Asean banks under the ABIF framework. Tetangco and BoT Governor Veerathai Santiprabhob signed the letter of intent.

And just recently, Bangko Sentral signed a letter of intent with Otoritas Jasa Keuangan, the monetary authority of Indonesia.

Asean Banking Integration Framework provides the general principles for the entry of qualified Asean banks from one Asean member state to another.

Bangko Sentral Deputy Governor Nestor Espenilla Jr., however, said local banks had not yet signified to expand overseas, saying any intention to go regional would be their business decisions.

For one, BDO Unibank Inc., the largest bank in the Philippines, said it would be prioritizing the domestic market because of the untapped potentials in other areas, particularly in the provinces. BDO is the country’s leading bank in terms of assets and size.

Under the Asean Banking Integration timeline, each Asean-5 country is to conclude at least one bilateral agreement with another Asean-5 country by 2018. Asean-5 refers to Indonesia, Malaysia, Philippines, Singapore and Thailand.

By 2020, ABIF targets the conclusion or near conclusion of at least one bilateral agreement for each of the 10 Asean members.

- Advertisement -

LATEST NEWS

Popular Articles