Bankers seek preferential treatment<\/p>\n
NUSA DUA, Bali (JP): Southeast Asian bankers are asking for
\npreferential treatment from their governments to enable them to
\nbenefit from the growth of financial services in the region.<\/p>\n
The call was one of the resolutions adopted by the Association
\nof ASEAN Bankers at the conclusion of its three-day meeting
\nyesterday.<\/p>\n
Tay Kah Chye, the secretary-general of the association, said
\nthat preferential treatment was essential to give regional banks
\nadditional strength prior to the liberalization of the banking
\nindustry.<\/p>\n
He said that regional banks should, for example, be given
\npriority in financing infrastructure projects in each of the
\nASEAN countries. The Association of Southeast Asian Nations
\n(ASEAN) is comprised of Brunei, Indonesia, Malaysia, the
\nPhilippines, Thailand and Singapore.<\/p>\n
To the same end, he said, the governments of ASEAN countries
\nshould also give wider access to the banks of other member-
\ncountries to enter the banking industry in their own countries.<\/p>\n
\"Such an arrangement is important to enable the regional banks
\nto compete with those from the developed nations in the
\nglobalization era,\" Tay told a press briefing at the end of the
\nannual meeting.<\/p>\n
The bankers' council, which also discussed cooperation
\nprograms approved at its meeting in Cebu, the Philippines, last
\nyear, failed, however, to achieve a consensus on a common
\nstrategic alliance in facing the globalization of financial
\nservices in the coming years.<\/p>\n
\"It is up to each bank on how to formulate its strategy in
\nresponding to the globalization trend,\" said Tay, who was
\naccompanied by Iwan R. Prawiranata, the chairman of the
\nfederation of Indonesian banks' associations and Salahuddin N.
\nKaoy, the president of the state-owned Bank Ekspor Impor
\nIndonesia.<\/p>\n
Resolutions<\/p>\n
He said that the meeting's resolutions on the promotion of
\nbilateral cooperation in fields such as treasury and
\ncorrespondent banking would be strong enough to enable the banks
\nto meet global competition.<\/p>\n
\"If the intra-ASEAN trade financing is all handled by regional
\nbanks, rather than those from outside ASEAN, the domestic banks
\nwill still be able to survive even in the liberalized market,\" he
\nsaid.<\/p>\n
The association will organize next year a number of workshops
\non the correspondent and treasury systems in each ASEAN member
\ncountry, Iwan said.<\/p>\n
In addition to the call for preferential treatment and the
\npromotion of treasury and correspondent banking, the meeting also
\nendorsed the appointment of Wong Nang Jang, the chief of the
\nAssociation of Banks in Singapore, as the chairman of the ASEAN
\nBankers' Association and its council for the 1995-1997 period,
\nreplacing Rafael B. Buenaventura of the Philippines.<\/p>\n
Indonesia's Minister of Finance Mar'ie Muhammad said he shared
\nthe concerns of the bankers about the negative impact of the
\nliberalization of financial services, which are now being
\nnegotiated within the framework of the World Trade Organization.<\/p>\n
In his speech, which was delivered by Director General for
\nFinancial Institutions Bambang Subianto, the minister urged the
\nASEAN financial community to take the steps necessary in facing
\nthe globalization of financial services.<\/p>\n
\"On the basis of the spirit of ASEAN and in line with the
\nmultilateral commitment, cooperation among ASEAN bankers is a
\nmust,\" he added.<\/p>\n
He said that Indonesia's banking industry had been gradually
\nreformed to meet to stimulate the growth of business activity
\nand, at the same time, to improve the country's economic
\nresilience against the impact of global economic and monetary
\ndevelopments. (hen)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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