January 04, 2015

BSP’s sets reforms to boost competitivenes of local banks for Asean integration

The Philippine Star today quoted the central bank governor as saying the recent banking reforms implemented by the BSP should help local banks become more competitive with regional banks with the impending Asean integration.

These reforms, including the liberalization of banking system and shoring up the capital base of banks and improving credit risk management, are meant to strengthen the domestic banking system while also helping local banks grow into more competitive regional players.

These reforms should also prepare local banks for the Asean Banking Integration Framework (ABIF), which is being eyed for implementation by 2020. The ABIF aims for parity of banking rules and regulations across Asean member countries. The ABIF is also expected to increase the availability and lower the cost of banking services in the country while also deepening the country’s capital markets. - WealthSec