The Bangko Sentral ng Pilipinas has called on its counterparts in
Southeast Asia to start working on the standardization of banking regulations
in the region to meet the goal of having a fully integrated Asean banking
system by 2020.
BSP Governor Amando Tetangco Jr.
said that under the plan, a bank in one Asean country would be allowed to
operate in another member-country under the same terms and conditions that
applied to local banks.
Tetangco said the standardization
of banking regulations might sound ambitious, but starting the necessary work
early would help the 10-member Association of Southeast Asian Nations realize
the goal on time.
“Asian Banking Integration
Framework (ABIF) is a major initiative in itself but with the aggressive
timeline, it is an ambitious undertaking … But the world should not
underestimate the resolve of the Asean leaders to pursue and achieve this
desired architecture,” Tetangco said in a speech delivered for him by BSP
Deputy Governor Nestor Espenilla Jr. during the membership meeting of the Asian
Bankers Association.
He said harmonized regulations
were necessary for the successful integration of the banking systems in the
region. This is because with common regulatory systems, banks would feel more
comfortable operating in foreign jurisdictions.
“Parity across jurisdictions is
proposed under the ABIF so that banking becomes ‘cost and policy neutral’
between one Asean jurisdiction and another,” Tetangco said.
This year’s gathering of members
of the ABA, which ran from Nov. 12 to 13 in Makati City, tackled the issues and
trends concerning Asian banks, such as strategies needed to remain resilient
amid the ongoing crisis in the euro zone and the role of banks in the
integration of Asean economies, which will start in 2015.
Rajendra Theagarajah, outgoing
chair of ABA, said in a press conference that the roadmap for the integration
of Asean banks by 2020 had already been completed.
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