Bank Negara Malaysia and Bank of Thailand have signed a Memorandum of Understanding on Banking Supervision and Financial Development Cooperation.
Muhammad bin Ibrahim, Governor of Bank Negara Malaysia, and Veerathai Santiprabhob, Governor of the Bank of Thailand, have signed a Memorandum of Understanding (MoU) on Banking Supervision and Financial Development Cooperation.
The MoU will serve as a foundation for effective supervision of banking institutions operating in both countries as well as a basis for closer coordination in areas key to ensuring sustainable financial development.
To support deepening regional integration and expanding trade and investment linkages between the two countries, cross border banking activities have increasingly significant roles in the financial system.
It also provides a strong basis for further development of effective supervisory systems in accordance with principles set out in the Basel Core Principles for Effective Banking Supervision.
Contrasting Fortunes
The MoU outlines various areas of supervisory and developmental cooperation, including cross-border and on-site supervision, market conduct supervision, consumer protection, financial inclusion, financial literacy as well as combatting financial crimes activities.
While Malaysia has frequently been the centre of attention because of its beleaguered wealth fund, 1 MDB, Thailand, despite its own political stress, has been quietly building its financial services industry.
Switzerland's Credit Suisse showed confidence in the country when it opened in Bangkok and Malaysia's Kuala Lumpur based bank CIMB aims to expand the number of its wealth customers under its CIMB Preferred scheme in Thailand to 70,000 this year.
