The Philippine and Thai central banks have signed a memorandum of understanding (MOU) to foster greater cooperation on banking supervision between the two countries.
The MOU signed last Sunday by Bangko Sentral ng Pilipinas Governor Nestor A. Espenilla Jr. and Bank of Thailand Governor Veerathai Santiprabhob “serves as a solid foundation for effective supervision of banking institutions operating in both countries in accordance with the principles set out in the Basel Core Principles for Effective Banking Supervision.”
In a joint statement, the two central banks also said: “The MOU sets out in greater detail the two authorities’ commitment to fostering greater information exchange and cooperation in the areas of licensing, on-site examinations, supervisory colleges, and crisis management.”
In April, former BSP Governor Amando M. Tetangco Jr. and Santiprabhob also signed a letter of intent (LOI) to start bilateral discussions towards allowing the entry of so-called qualified Asean banks (QABs) in each country.
Tetangco previously said that the LOI “formalizes our intention to eventually craft the specific provisions that will govern the entry of QABs between our two countries.”