Malaysia, Thailand's banking institutions invited to be qualified ASEAN banks

This is pursuant to a bilateral arrangement under the ASEAN Banking Integration Framework (ABIF) between Bank Negara Malaysia (BNM) and the Bank of Thailand (BOT).

According to a joint statement by BNM and BOT today, QABs are envisioned to facilitate greater intra-ASEAN trade and investment in the region, in accordance with the ASEAN Economic Community Blueprint 2025 that aims to create an integrated and highly cohesive ASEAN economy.

"To ensure the financial stability of both countries, a QAB candidate -- whether a new entrant or an existing bank in the host country -- must be a strong and well-managed bank that has its interest endorsed by the home country's regulator and comply with the host country's prudential requirements.

"A successful QAB candidate will enjoy market access and operational flexibilities accorded under the bilateral arrangement," it said.

The statement said the bilateral arrangement and its commitments form part of the ASEAN Framework Agreement on Services (AFAS), and both central banks reckoned that the bilateral arrangement is a significant milestone in the journey towards ASEAN financial integration as envisioned under the ABIF initiative.

Recently, the BOT and BNM had also launched the Cross-Border QR Payment Linkage between Thailand and Malaysia, it said.

BNM Governor Datuk Nor Shamsiah Mohd Yunus said the bilateral arrangement signified the strengthening of economic ties between Malaysia and Thailand -- set to benefit the people of both countries as they will be able to enjoy better banking convenience and access to a wider range of banking products.

"We are taking great strides towards creating an integrated and cohesive ASEAN economy, and we are confident that the QAB arrangement will foster more business opportunities and economic activities between the two countries to facilitate both our economic recoveries amidst the ongoing pandemic," she said.

BOT Governor Sethaput Suthiwartnarueput said the bilateral QAB arrangement marked another important milestone for the long-standing partnership between the two countries, as well as ASEAN's efforts towards deeper regional financial integration.

He believed that the arrangement would bring about a wider range of high-quality financial products that would better serve the needs of businesses and consumers in both countries.

"It is our aspiration to see QAB arrangements pave the way for further financial cooperation among ASEAN members as the region embraces new financial innovations," he said.