Malaysia, Philippines allow greater access for their banks in both countries

KUALA LUMPUR: Banks in Malaysia and the Philippines will now have better access to operate in each other’s countries and have improved flexibility in terms of banking activities, branches and other forms of delivery channels. 

This follows the conclusion of negotiations under the the Asean Banking Integration Framework (ABIF) between the central banks of Malaysia and the Philippines.

The negotiations cover among others, the number of Qualified Asean Banks (QABs) to operate in each other’s countries, form of presence and operational flexibilities in the scope of banking activities, branches and other forms of delivery channels. 

In a statement on Thursday, Bank Negara said Bank Negara governor Datuk Muhammad Ibrahim and Bangko Sentral ng Pilipinas governor Amando M. Tetangco, Jr had signed the Declaration of Conclusion of Negotiations at the sidelines of the 3rd Asean Finance Ministers’ and Governors’ Meeting in Mactan, Cebu Island, Philippines.

Building upon the Heads of Agreement signed on March 14, 2016, the declaration marks the completion of negotiations between the central banks.

The commitments form part of the Asean Framework Agreement on Services to be inscribed in the respective countries’ Schedules of Specific Commitments, and will come into effect upon each country’s domestic approval and ratification process, it said.

This marks Bank Negara’s second ABIF arrangement following the bilateral agreement with Indonesia’s Otoritas Jasa Keuangan in August 2016.

“With the conclusion of the negotiations, both Bank Negara Malaysia and Bangko Sentral ng Pilipinas look forward to the presence of each other’s QABs to facilitate regional cross-border trade and investment,” it said.