Malaysia, Thailand set rules for bank entry under Asean accord
MALAYSIAN banks seeking to operate in Thailand under a regional accord can open as many as 40 branches and should have at least 15 billion baht (S$611.5 million) in capital, according to rules unveiled on Tuesday.
Lenders must submit their applications to the Bank of Thailand to become a Qualified Asean Bank (QAB), Thailand's Ministry of Finance said in rules notified in the Royal Gazette. They will also have to secure approvals from the central banks in both the jurisdictions, and the Thai finance minister.
Similarly, Thai banks seeking to operate in Malaysia as QABs can indicate their interests, according to a joint statement by the Bank of Thai-land and Bank Negara Malaysia on Tuesday.
The designated banks are meant to facilitate greater intra-Asean trade and investment for the creation of an integrated and highly cohesive regional economy, the regulators said.
The bilateral agreement is seen as a key step in boosting market access among members of the Association of South-east Asian Nations, or Asean, under an accord signed in 2015.
Source from: The Business Times (2021). Malaysia, Thailand set rules for bank entry under Asean accord(Sep 15, 2021). https://www.businesstimes.com.sg/banking-finance/malaysia-thailand-set-rules-for-bank-entry-under-asean-accord