THE Bangko Sentral ng Pilipinas (BSP) has signed a memoradum of understanding (MoU) on cooperation with the Czech National Bank covering information exchange and regulatory cooperation.
In a statement sent to reporters on Friday, the BSP said the agremeent with the Czech central bank, signed in Bali Friday on the sidelines of the IMF-World Bank annual meetings, will serve as a framework “for closer coordination and beneficial cooperation” between the two entities.
The framework will be in accordance with the Basel Core Principles for Effective Banking Supervision.
“The MoU provides in greater detail the two financial reulators’ commitment to foster greater information exchange and cooperation on regulatory systems, supervisory procedures, including licensing, as well as capacity-building programs on areas of mutual interest,” the BSP said.
Deputy governor Chuchi G. Fonacier, asked to comment on the agreement, said “the parties agree to establish and facilitate cooperation in various mutually beneficial ways and through channels such as sharing experience through regular exchange of info, policy dialogue and technical cooperation (such as joint seminars and workshops, training programs, staff visits by experts) in areas of mutual interest and within the scope of competence of the respective parties.
The Basel Core Principles for Effective Banking Supervision encourage cooperation and collaboration among domestic authorities and foreign supervisors as “these arrangements work in practice, where necessary.”
The BSP has been signing agreements with other monetary authorities to improve ties and exchange and promote innovation in the financial system.
In December, it signed a bilateral agreement with the Bank of Thailand to promote “greater infomation and cooperation” in terms of banking supervision under the ASEAN banking integration framework.
The BSP and Bank Negara Malaysia also have an agreement in place that would allow three banks from each nation to operate in the other.
In November, the BSP also signed with the Monetary Authority of Singapore a financial technology (fintech) cooperation agreement, enabling the central banks share to emerging technologies and “refer promising fintech firms to each other.” — Karl Angelo N. Vidal