- European Union (EU)
- Association of Southeast Asian Nations (ASEAN)
- North American Free Trade Agreement (NAFTA)
- MERCOSUR (the common market of South America)
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Article: ASEAN Integration seen to benefit Phl banks
(http://www.philstar.com/business/2014/03/19/1302413/asean-integration-seen-benefit-phl-banks)
Banks in the Philippines are expected to benefit from integrating the ASEAN program in 2020 because it will lead to greater market opportunities and generate more competition in the market.
Local banks are still very small in comparison with other ASEAN banks in terms of capital and assets and the Philippine banking system's total assets only amounts to 70% of Singapore's DBS assets.
Philippine banks have been preparing for the ASEAN integration in 2020 by raining capital and aggressively expansing; these banks will become more efficient as a result of a greater exchange in technology and innovation.
The Philippines could have a loss of sovereignty as a result of the financial integration program of ASEAN which is set for full implementation in 2020. This is because the Philippine banks would have to abide by the rules which the ABIF (ASEAN Banking Integration Framework) has set in order for the rules across the 10 countries in the ASEAN to be the same. This is so that ASEAN banks can operate as local banks rather than foreign banks. The ASEAN integration might be a challenge for the Philippines because the ASEAN only constitutes 17% share of its exports.
Anti Globalization
- 9/11 made people feel that protesting was unpatriotic
- World Bank and IMF have changed their policies, people are then satisfied
- decline of the economy
- the World Bank and IMF have been less financially influential
This is such an interesting article Chanel. I just read somewhere, I think in the Phil Star too, that Metrobank is one of the "healthiest" banks in the Philippines. They have over a thousand branches with over 400 ATM machines (at least I think thats what the article says if I remember right). I would love to know more about what it is exactly the "2020" program is set to do. The article calls it the Asean Banking Integration Framwork (ABIF). Interesting!!!
ReplyDeleteThe ASEAN treaty may limit the ability of Philippine Banks, but wouldn’t it also be beneficial in a way? Such that now all the Banks in ASEAN has equal opportunities to operate on local scales?
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