KUALA LUMPUR: The central banks of Malaysia and Thailand signed a Memorandum of Understanding (MoU) to enhance the supervision of banks operating in both countries as well as to improve coordination in key areas.
In a joint statement, the central banks of both countries said on Thursday the MoU served as a solid foundation for effective supervision of the banking institutions operating in both countries, as well as a basis for closer coordination in the areas key to ensuring sustainable financial development.
Bank Negara Governor Datuk Muhammad Ibrahim and Bank of Thailand Governor Veerathai Santiprabhob signed the MoU on Banking Supervision and Financial Development Cooperation on Thursday.
“To support deepening regional integration and expanding trade and investment linkages between the two countries, cross border banking activities have increasingly significant roles in the financial system.
“In recognition of these important financial developments, the MoU reflects enhanced cooperation between the two authorities to ensure financial stability and sustainable financial development,” it said.
The banks added that the MoU also provided a strong basis for further development of effective supervisory systems in accordance with principles set out in the Basel Core Principles for Effective Banking Supervision.
The MoU outlines various areas of supervisory and developmental cooperation, including cross-border and on-site supervision, market conduct supervision, consumer protection, financial inclusion, financial literacy as well as combatting financial crimes activities.