The central banks from five major ASEAN countries have committed to sign a multilateral cross-border financial supervision agreement, aiming to safeguard the nations from negative impacts of the recent surging capital inflows, local media reported on Friday.
The deputy governor of Bank Indonesia (BI), the central bank of Indonesia, Halim Alamsyah said that Indonesia, Malaysia, Singapore, Thailand and the Philippines would seek for approval from other countries in the region that are members of the South East Asia Central Banks (SEACEN) Center in order to reach a regional agreement on the matter.
“In February of next year, there will be a SEACEN governors forum which will decide if the commitment could be agreed by other member countries,” he said on the sidelines of a South East Asian central bankers meeting held in Jimbaran, Bali on Friday.
The cross border agreement is expected to supervise Southeast Asian micro and macro financial activities and their central banks and to cooperate in the midst of flooding capital inflows, Halim said. “