Bank of Thailand and Monetary Authority of Singapore sign FinTech Cooperation Agreement
Veerathai Santiprabhob, Governor, BOT (L) and Ravi Menon, Managing Director, MAS (R) /Photo credit: MAS
The Bank of Thailand (BOT) and the Monetary Authority of Singapore (MAS) have signed a FinTech Cooperation Agreement (CA) and updated an existing Memorandum of Understanding (MOU) on Banking Supervision. The two documents were signed at the side of the biennial BOT-MAS Bilateral Meeting.
The CA enables the BOT and MAS to share information on emerging market trends and their impact on regulations. In addition, the two regulators will be able to refer FinTech companies to their counterparts. The agreement also signals a shared intent to explore jointly undertaking innovation projects, especially those with potential for cross-border applicability. The aim is to help develop a richer financial ecosystem in Thailand and Singapore as well as in ASEAN.
BOT and MAS also updated their MOU on Banking Supervision, which had been in place since 2006. The MOU serves to strengthen bilateral collaboration in safeguarding the resilience of the two countries’ banking systems. The updated MOU sets out in greater detail the two central banks’ commitment to fostering greater information exchange and cooperation in the areas of licensing, on-site examinations, supervisory colleges, and crisis management.
Veerathai Santiprabhob, Governor, BOT, said, “The MOU and the CA between MAS and BOT represent another important milestone in the development of the banking supervision and FinTech cooperation between our two 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. Cooperation on new financial technology will bring about greater financial inclusion and upgrade the provision of financial services to our region.”
Ravi Menon, Managing Director, MAS, said, “BOT and MAS are longstanding partners in promoting regional financial integration and supervisory cooperation. We also share a common interest in promoting innovation and growing the FinTech ecosystem to better serve ASEAN markets. 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.”
Several FinTech cooperation agreements since 2016
Since last year, MAS has signed several agreements with overseas financial regulators for cooperation on the development of FinTech, including with the Financial Conduct Authority, UK (May 2016), Australian Securities and Investments Commission (June 2016), Swiss Financial Market Supervisory Authority (September 2016), Korean Financial Services Commission (October 2016), Autorité de Contrôle Prudentiel et de Résolution and the Autorité des Marchés Financiers of France (March 2017), Financial Services of Agency, Japan (March 2017) and the Danish Financial Supervisory Authority (June 2017).
In late March, MAS entered into a Cooperation Agreement with Abu Dhabi Global Market to cooperate on developments and initiatives that nurture FinTech entrepreneurship and support innovation in financial services in both countries.
On May 23 2017, MAS signed a memorandum of cooperation with International Finance Corporation (IFC), a member of the World Bank Group to work together for establishing and developing the ASEAN Financial Innovation Network (AFIN). In June 2017, MAS and the Association of Supervisors of Banks of the Americas (ASBA) signed a MOU to bolster FinTech ties between Singapore and the Americas.