The Bank of Thailand (BOT) and the Monetary Authority of Singapore (MAS) have concluded their biennial BOT-MAS Bilateral Meeting by securing two financial services agreements: a fintech cooperation deal, and an update to an existing Memorandum of Understanding (MoU) on banking supervision.
The fintech agreement provides a direct channel for BOT and MAS to share information on relevant regulations and emerging market trends, as well as refer fintech companies to one another for guidance on cross-border initiatives.
As part of the agreement, the regulators will also seek to explore joint innovation projects that nurture fintech within the countries and across the ASEAN region more broadly.
The agreement marks MAS’ third fintech deal in two months, following similar accords with Danish regulator, Finanstilsynet, and the Association of Supervisors of Banks of the Americas (ASBA).
The ASEAN regulators also secured an update to a decade-old MoU designed to safeguard banking resilience between the two countries.
Signed concurrently with the fintech agreement, the updated MoU will facilitate better cross-border communication on licensing, on-site examinations, supervisory colleges, and crisis management, according to a MAS statement.
Veerathai Santiprabhob, Governor, BOT, said the agreements provide an important milestone in banking supervision and fintech cooperation between the central banks and across the wider ASEAN region.
“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,” Santiprabhob said.
According to Ravi Menon, Managing Director, MAS, the Thailand and Singapore regulators remain longstanding partners in promoting regional financial integration and supervisory cooperation.
“The CA and the MOU are complementary, and reflect our joint commitment to capture new opportunities in cross-border financial services while containing their risks,” Menon said.
As the second-largest economy in the ASEAN region, Thailand’s still nascent fintech market is poised for significant growth.
The Bangkok Bank, one the country’s largest commercial banks, last month launched the Bangkok Bank InnoHub, an accelerator program that gives local fintechs an opportunity to collaborate directly with the bank to develop a proof of concept and secure investment.