Bangko Sentral calls for ASEAN framework on regional banking

The Association of Southeast Asian Nations (ASEAN) needs to create a cooperation framework for regional banking, Bangko Sentral ng Pilipinas (BSP) Governor Nestor Espenilla Jr. said on Monday.

"Let's engage. What I mean by that is that at a national level, we need to create a framework for cooperation and competition," he said during the ASEAN Business and Investment Summit in Parañaque City when he was asked about his message to leaders of the 10-member regional bloc.

"We need to be able to create spaces where we work together, build standards," Espenilla noted.

The Philippines has started talks with at least three countries to allow ASEAN banks to do business in each other's financial system under the ASEAN Banking Integration Framework.

The BSP signed earlier this year a letter of intent to formally start negotiations with the Otoritas Jasa Keuangan of Indonesia.

It signed a bilateral agreement with the Bank Negara Malaysia on the entry of qualified ASEAN banks, and was in talks with the Bank of Thailand (BOT) on forging a similar agreement. — VDS, GMA News