Thai, S'pore central banks sign fintech deal

The Monetary Authority of Singapore building in Shenton Way.
The Monetary Authority of Singapore building in Shenton Way. PHOTO: ST FILE

The Bank of Thailand (BOT) and the Monetary Authority of Singapore (MAS) have agreed to work together to improve the financial system across Asean.

They signed a fintech cooperation agreement yesterday and updated an existing memorandum of understanding on banking supervision at a biennial bilateral meeting hosted by the MAS.

The MAS said the fintech agreement lets the two institutions share information on emerging market trends and their impact on regulations, and to refer fintech firms to their counterparts.

"It signals a shared intent to explore jointly undertaking innovation projects, especially those with potential for cross-border applicability," it added.

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The banking supervision agreement, which has been in place since 2006, has been updated to include greater detail of how the two central banks will foster greater information exchange, and "cooperation in the areas of licensing, on-site examinations, supervisory colleges and crisis management".

BOT governor Veerathai Santiprabhob said the agreements are a milestone for the central banks.

"In our present era characterised by volatility, complexity and technological innovations, I believe that strengthening cooperation among our institutions will play a key role in fostering regional financial stability and sustainable growth," he added.

"Cooperation on new financial technology will bring about greater financial inclusion and upgrade... financial services to our region."

MAS managing director Ravi Menon added that the two central banks are committed to "new opportunities in cross-border financial services while containing their risks".

A version of this article appeared in the print edition of The Straits Times on July 12, 2017, with the headline 'Thai, S'pore central banks sign fintech deal'. Print Edition | Subscribe