KUALA LUMPUR: Bank Negara and Bank of Thailand invite banking institutions in their respective countries to express their interest in becoming a Qualified Asean Bank (QAB).
This is in line with the ASEAN Banking Integration Framework (ABIF) bilateral agreements, which are part of the ASEAN Services Framework (AFAS).
In a joint press release issued on Tuesday, banking regulators said a successful QAB candidate will benefit from the market access and operational flexibilities granted under the bilateral deal.
QABs are supposed to facilitate greater intra-Asean trade and investment in the region, in line with the ASEAN Economic Community Master Plan 2025 which aims to create an integrated and highly cohesive ASEAN economy, he said. -he declares.
According to the statement, a candidate for QAB, whether a new entrant or an existing bank, must be a strong, well-managed bank whose interests are approved by the home country regulator and be comply with the prudential requirements of the host country.
This is to ensure the financial stability of the two countries, he added.
The bilateral agreement is an important step in the journey towards financial integration of ASEAN as envisioned under the ABIF initiative. Recently, Bank Negara and Bank of Thailand also launched the cross-border QR payment link between Thailand and Malaysia.
“This bilateral agreement means strengthening economic ties between Malaysia and Thailand, and it should benefit residents of both countries where they can enjoy better banking convenience as well as access to a wider range of banking products. .
“We are making great strides towards creating an integrated and cohesive ASEAN economy, and we are confident that the QAB Agreement will foster more trade opportunities and economic activities between the two countries to facilitate the both our economic recovery amid the ongoing pandemic, ”Bank Negara said. Governor Nor Shamsiah Yunus.
Bank of Thailand Governor Sethaput Suthiwartnarueput added that the deal marks another important milestone in the two countries’ long-standing partnership as well as ASEAN’s efforts for deeper regional financial integration.
“The arrangement will provide a wider range of high-quality financial products that will better meet the needs of businesses and consumers in both countries.
“We aspire that the QAB agreements pave the way for increased financial cooperation among ASEAN members as the region embraces new financial innovations,” he said.