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Malaysian National News Agency

Thai Central Bank Finalising Deal On QAB With Bank Negara
Business
November 29, 2017 14:06 PM
BANGKOK, Nov 29 (Bernama) -- The Bank of Thailand (BoT) expects to finalise a deal with Malaysia's central bank, Bank NegaraMalaysia (BNM), on Qualified ASEANBanking (QAB) criteria soon,pavingthe way for indigenous banks in one country to operate in the other and receive treatment as local banks.

According to BoT Governor, VeerathaiSantiprabhob, it wasin the process of negotiating with Indonesia's Financial Services Authority and the Central Bank of Myanmar on the establishment of QAB.

"We are negotiating with three central banks but the agreement with Malaysia should soon be finalised," he was quoted as saying by the local media here today.

BoT signed its first Heads of Agreement on a reciprocal bilateral arrangement regarding QAB with BNM on March 14 last year, he added.

The bilateral arrangement is part of an umbrella agreement called the ASEANBanking Integration Framework, which provides greateraccess for indigenous ASEANbanks to other member countries' banking sector as well as operational flexibility on a reciprocal basis.

Two Malaysian financial institutions, CIMB Group and RHB Bank have banking operations in Thailand while Bangkok Bank'swholly-owned subsidiary, Bangkok Bank Bhd,operates in Malaysia.

Veerathaisaid ASEANcentral banks shared a common goal of promoting financial integration among the regional grouping.

"We see integration in terms of investment and trade between Thai companies and neighbouring countries continuing to strengthen. Thaifinancial institutions also have expanded their operations into neighbouring countries," he said.

-- BERNAMA

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