Manila / DPA
The central banks of the Philippines and Malaysia have agreed to allow up to three so-called Qualified Asean Banks (QABs) from each country to operate in the other.
In a statement, the Bangko Sentral ng Pilipinas (BSP) said Governor Amando M. Tetangco Jr. had signed a heads of agreement (HOA) with Bank Negara Malaysia (BNM) Governor Zeti Akhtar Aziz in Kuala Lumpur Monday.
The BSP said the HOA between the BSP and the BNM was among the first bilateral pacts signed under the Asean Banking Integration Framework (ABIF). It said the agreement was â€œin line with strengthening intra-regional trade and investmentsâ€ under the said framework.
â€œWhile the HOA outlines market access and operational flexibilities that may be accorded to QABs from each jurisdiction into the other, these QABs shall operate under the prevailing laws and regulations in the Philippines and Malaysia, respectively,” the BSP said.