Asean bank integration may take longer than expected, says BSP | Inquirer Business

Asean bank integration may take longer than expected, says BSP

MANILA, Philippines–It may take as long as five more years, or until 2020, before Southeast Asia’s banking industry becomes fully integrated, regulators said this week, as they unveiled the staggered time frame for cross-border operations of the region’s lenders.

In a statement, the Bangko Sentral ng Pilipinas (BSP) said the region’s regulators agreed on stringent rules for the implementation of the Association of Southeast Asian Nations (Asean) Banking Integration Framework (ABIF).

Finalized last March 21, ABIF rules pave the way for countries to start bilateral talks with neighbors regarding the operations of their banks.

Article continues after this advertisement

“ABIF is integral to the achievement of a financially and economically integrated Asean region,” the BSP said in a statement.

FEATURED STORIES

Despite the approval of the region-wide deal, bilateral talks are still needed because not all Asean countries are ready for the integration, BSP Governor Amando M. Tetangco Jr. said in a previous interview.

With ABIF, the region will adapt to the new regime step-by-step. The Asean’s most immediate goal is for at least two of 10 members to sign a bilateral deal that will open up their respective banking sectors.

Article continues after this advertisement

By 2018, each member of the so-called Asean 5—namely Indonesia, Malaysia, the Philippines, Singapore and Thailand—should all have at least one bilateral deal with other countries in the region. By 2020, all 10 member states must each have at least one bilateral deal with their neighbors.

Article continues after this advertisement

Ensuring reciprocity is one of the goals of bilateral talks. Tetangco earlier said countries should agree to open their industries to each other’s respective banks.

Last year, the Philippines’ legislature approved the liberalization of the banking sector and allow the entry of more foreign lenders.

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

TAGS: ASEAN, Banking

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our newsletter!

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

© Copyright 1997-2024 INQUIRER.net | All Rights Reserved

This is an information message

We use cookies to enhance your experience. By continuing, you agree to our use of cookies. Learn more here.