BNM, Otoritas Jasa Keuangan ink regulatory cooperation deal

  • Banking Premium
  • Monday, 01 Aug 2016

JAKARTA, 1 Ogos -- Perdana Menteri Datuk Seri Najib Tun Razak (belakang, kiri) dan Presiden Indonesia Joko Widodo (belakang, kanan) menyaksikan pertukaran dokumen selepas penandatanganan memorandum persefahaman antara Malaysia dan Indonesia dalam bidang kewangan. Malaysia diwakili Gabenor Bank Negara Datuk Muhammad Ibrahim (kiri) manakala Indonesia pula diwakili Pengerusi Otoritas Jasa Keuangan, Muliaman D. Hadad (kanan) sempena pertemuan Perundingan Tahunan Malaysia-Indonesia ke-11 di Istana Merdeka hari ini. --fotoBERNAMA (2016) HAK CIPTA TERPELIHARA

KUALA LUMPUR: Bank Negara Malaysia (BNM) on Monday signed a bilateral agreement with Otoritas Jasa Keuangan under the Asean Banking Integration Framework (ABIF).

The agreement was signed by Bank Negara Malaysia governor Datuk Muhammad Ibrahim and Otoritas Jasa Keuangan Board of Commissioners Chairman Dr Muliaman D. Hadad, in conjunction with the 11th Meeting of the Annual Consultation between Prime Minister Datuk Seri Najib Tun Razak and Indonesia President Joko Widodo.

BNM said in a statement here the agreement, which seeks to operationalise the earlier heads of agreement in 2014, would provide greater access and operational flexibility for Malaysian and Indonesian Qualified Asean Banks operating in the respective jurisdictions.

“The commitments in the agreement form part of the Asean Framework Agreement on Services.

“Following the official launch of ABIF and establishment of the Asean Economic Community in 2015, the agreement represents a significant milestone towards achieving greater banking and financial integration within Asean,” BNM said.

The central bank said it looked forward to the establishment of Indonesian Qualified Asean Banks in Malaysia.

“Under the agreement, it is envisaged that both Malaysian and Indonesian banks will have a greater role in facilitating cross-border trade and investment between both countries.

“The increased banking and financial integration will further deepen the potential for mutually reinforcing growth and greater shared prosperity between both countries and within the region,” it said.

BNM and Otoritas Jasa Keuangan also inked a memorandum of understanding (MoU) in April 2016 to further enhance supervisory cooperation to promote adequate safeguards in a more integrated environment.

BNM said the MoU covered areas of supervisory cooperation and coordination, including exchange of information, facilitation of consolidated and cross-border on-site supervision, financial crime and crisis management in accordance with the core principles of effective banking supervision and the insurance core principles.

“The agreement and MoU signify the commitment of both BNM and Otoritas Jasa Keuangan towards promoting greater regulatory cooperation as the region moves forward in pursuit of deeper regional financial integration,” it noted. - Bernama

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