Banks in Southeast Asia gears up for integration

Bank Indonesia and Bank Negara Malaysia lead ASEAN banking integration by 2020.

Bank Indonesia Director of Banking Research and Regulation, Wimboh Santoso, said BI and Bank Negara Malaysia were appointed task force joint chief in formulating the framework of banking integration. The target for Economic banking integration to be achieved is in 2020.

The integration of banks will still pay attention to economic and financial benefits of each designated country.

"The level of the banking integration will be measured by the number of Qualified ASEAN Banks (QABs) running cross-border operations throughout ASEAN countries," said Wimboh on Wednesday, August 10, 2011.

Although the value of Indonesia's competitiveness is lower, it along with Singapore gave place to more liberalization when compared to other ASEAN countries. In 2013, all banks may set up branches in other countries provided that the corresponding countries apply similar regulations.

View the full story in Viva News.