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Asean bankers figure out regional integration
Commercial banks in the Asean region need to speed up development of common standards as regional economies integrate.
This was an issue addressed by regional banking council members at a meeting in Vientiane that aimed to narrow gaps in banking regulations and standards so financial institutions can operate more efficiently and offer improved international trade settlement services.
The 41st annual conference of bankers from Asean member states also discussed human resource development cooperation aimed at assisting banks to apply new technology to ensure faster and safer international trade settlements amid growing intra-regional economic cooperation.
The official opening ceremony of the conference will take place today. The governor of the Bank of the Lao PDR will deliver a speech at the event which about 200 delegates will attend.
According to a study unveiled at the meeting yesterday, there are still a variety of banking standards and systems in place within Asean member countries, making it difficult for banks to offer international trade settlements.
Asean member countries also have different banking legislation and regulations, one of the main barriers for integration of the regional banking sector in the economic bloc of more than 500 million consumers.
The study suggests that, first of all, banks have to identify common standards to adopt and put into practice. The council plans to assist its members to implement a standardised banking system through capacity building and technical assistance.
Integration of the regional banking sector is an important issue for Asean member countries as they seek to establish an Asean economic community.
Asean plans to establish a regional economic community by 2015, which will bring the 10 countries of Brunei, Cambodia, Laos, Malaysia, Myanmar, Indonesia, the Philippines, Singapore, Vietnam and Thailand into a single market and production base where skilled labour and capital can flow freely.
Establishment of such a community will be impossible without the integration of the banking and financial sectors.
Laos has been improving its capital market as it seeks to integrate with the region. The country has set up a stock market and strengthened the operations of commercial banks and microfinance institutions, making it easier for local and foreign firms to access investment capital for business growth, thus creating more jobs.
The Lao government is currently drafting a law to oversee the stock market and expects to complete it next year. The law will create more investor confidence in listed companies.
vientiane times
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