KUALA LUMPUR: The central banks of Malaysia and Thailand have signed a Memorandum of Understanding (MoU) on Banking Supervision and Financial Development Cooperation, to supervise banking institutions operating in both countries, and foster closer coordination in areas key to ensuring sustainable financial development.
In an emailed statement today, Bank Negara Malaysia (BNM) said that the MoU will deepen regional integration and expand trade and investment linkages between Malaysia and Thailand, in light of an increase in cross-border banking activities in their respective financial systems.
"In recognition of these important financial developments, the MoU reflects enhanced cooperation between the two authorities to ensure financial stability and sustainable financial development.
"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," BNM said.
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 crime activities.
The MoU was signed by BNM governor, Datuk Muhammad Ibrahim, and Bank of Thailand governor, Veerathai Santiprabhob.