The Bangko Sentral ng Pilipinas (BSP) on Monday announced the signing of another bilateral agreement with Thailand, aiming to boost exchange of technical support in the two countries’ banking systems.
BSP Governor Nestor A. Espenilla Jr. and Governor Veerathai Santiprabhob, his counterpart in the Bank of Thailand, signed in Bangkok, Thailand, a memorandum of understanding (MOU) on banking supervision.
The BSP said the new MOU details the two authorities’ commitment to fostering information exchange and cooperation, particularly in the areas of licensing, on-site examinations, supervisory colleges and crisis management.
“The MOU serves as a solid foundation for effective supervision of banking institutions operating in both countries in accordance with the principles set out in the Basel Core Principles for Effective Banking Supervision,” the BSP said in a statement.
Earlier this year, the BSP also signed with Bank of Thailand a Letter of Intent (LOI) to begin bilateral Asean Banking Integration Framework (Abif) discussions.
About a month after the central bank’s agreement with Thailand, the BSP and Indonesia’s Otoritas Jasa Keuangan or Financial Services Authority also signed an LOI to formally start Abif negotiations ceremonies held in Jakarta, Indonesia.
Deputy BSP Governor for the Supervision and Examination Sector Chuchi Fonacier said the BSP looks forward to completing bilateral discussions with Thailand next year.
The Philippines has received praise for actively pushing forward its Abif commitments through the signing of bilateral commitments with counterparts in the region.
Abif is a framework agreement among the Asean member-states facilitating the entry and operation of qualified Asean banks in other Asean countries. It promotes equal access and treatment among banks, thereby facilitating the expansion of intra-regional
trade.