NEED TO ESTABLISH ASIAN BANKING FRAMEWORK

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 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 is 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.
-- BERNAMA