KUALA LUMPUR, Sept 24 (Bernama) -- There is a need to establish an Asian banking framework to serve as a guideline for the regional banking sector to undertake cross border activities.
Group Chief Executive of CIMB Group Datuk Seri Nazir Razak said the framework would also enable banks to enhance business capabilities and at the same time regulate them.
"As economies integrate, it is important that you look at a banking framework that banks can capitalise on," he said at press conference held in conjunction with the Institute of International Finance (IIF) Annual Meeting of Chief Executive Officers of financial institutions active in Asia, here Friday.
However, Nazir said for a start it was easier to establish the framework at the Asean level as it was more practical.
He said the framework would encompass various issues such as a centralised operation, flow of information, movement of people, regulatory coordination, licensing, ownership and branching rules.
"It easier for us to develop a framework within 10 countries rather than more. Hopefully, Asean governments would consider this," he added.
CIMB Group hosted the IIF Annual Meeting on Sept 23-24.
The meeting provided senior bankers with the opportunity to exchange views on key economic and financial issues facing the region with their peers, leading officials and financial experts.
Besides urging the establishment of an Asian banking framework, the participants of the meeting also recommended the establishment of regional rating agencies in order to strengthen competition in the industry and help improve performance.