It is the ABIF
in 2020 that is critical as far as integration is concerned," said Guinigundo.
By 2020, ABIF
targets the conclusion or near conclusion of at least one bilateral accord for each of the 10 Asean members,' the BSP added.
Governor Tetangco said that By signing this agreement, the BSP manifests its commitment to support greater regional financial integration and economic development through the ABIF
On Thursday, the Bangko Sentral ng Pilipinas (BSP) concluded ABIF
negotiations with Bank Negara Malaysia (BNM) and began talks with the Bank of Thailand (BoT) in Lapu-Lapu City.
The HOA is a positive step in signifying the applicability of the bilateral process under the ABIF
and will hopefully serve to encourage other bilateral arrangements under it.
The BSP's Monetary Board endorsed the revised RA 7721 in preparation for the ABIF
that will start next year but will only reach semi-integration by 2020.
In accordance with ABIF
, the BSP has signed a high-level agreement with Bank Negara Malaysia (BNM) governing QABs and looks forward to forging at least two more agreements as early as [April],' Tetangco said in a recent speech.
According to Asean's website, ABIF
recognizes that some countries are more ready than others to further open up their banking sector Hence, the current focus is on pursuing bilateral reciprocal arrangements such as the agreement between the Philippine and Malaysian central banks.
With the ABIF
, any two ASEAN countries may enter into reciprocal bilateral agreements to provide QABs with greater market access and operational flexibilities.
represents a critical milestone for Asean toward achieving greater financial and economic integration.
Bank Indonesia said that the ABIF
'provides an operating framework for ASEAN member states to implement principles and the integration process in the banking sector to support the ASEAN Economic Community (AEC) [which is to be implemented later this year.
Finalized last March 21, ABIF
rules pave the way for countries to start bilateral talks with neighbors regarding the operations of their banks.