The two-day meeting held in Chiang Rai wrapped up on Friday.

Thai Finance Minister Apisak Tantivorawong told the press that Asean members expect the RCEP free-trade agreement to boost trade and investment in the region, compensating for the adverse impacts of trade protectionism.

RCEP comprises the 10-Asean bloc plus Australia, China, Japan, India, New Zealand and South Korea.

An agreement was signed on Friday at the Asean Finance Ministers’ and Central Bank Governors’ Meeting in Chiang Rai, north of Thailand.

The signing of the 8th Protocol marks the occasion where all Asean member states adopt the commitment resulting from the 8th round of negotiation, said the Asean statement issued on Friday .

Under the agreement, multiple countries have bilaterally agreed on “Qualified Asean Banks” or OABs.

The agreement adds flexibility to the establishment of Asean banks in Asean member states.

Progress has also been made in non-life insurance, including marine, aviation, and transit or MAT insurance.

Restriction in the securities sector have also been further removed as Thailand agreed to allow foreign investors to hold up to 100 per cent of stakes in asset management business, mutual fund management, private fund management, security brokerage for investment unit, dealing in securities, investment advisory and venture capital.

Assistant governor of the Bank of Thailand, Alisara Mahasandana, said that Thailand has been negotiating with Indonesia, Myanmar and Philippines on banking liberalisation.

The launch ceremony was witnessed by Thailand’s Minister of Finance  Apisak Tantivorawong and ADB President Takehiko Nakao. Senior officials from the Association of Southeast Asian Nations (Asean) and private sector partners joined the ceremony, according to an ADB press statement issued on Thursday at Asean Finance Ministers’ Meeting in Chiang Rai, north of Thailand.

ADB previously warned that if climate change was not addressed it could reduce the region’s gross domestic product by 11 per cent by the end of the century.

Meanwhile, Hong Kong and Shanghai Banking Corporation (HSBC) on Friday suggested Asean should attract private financing for sustainablility linked infrastructure development in Asean.

The HSBC called for an annual “Doing Sustainable Infrastructure Report”  saying that to date, there is no single, standardised, validated and dedicated report that governments, international organisations, development banks and the private sector can rely on to evaluate progress and identify opportunities for further improvement in the Asean region.

Governors of the central banks of four Southeast Asian nations signed letters of intent on Friday outlining a framework for local-currency settlements.

At the Asean Finance Ministers and Central Bank Governors Meeting in Chiang Rai on Friday, Benjamin Diokno of Bangko Sentral ng Pilipinas signed separate letters with Perry Warjiyo of Bank Indonesia, Nor Shamsiah Yunus of Bank Negara Malaysia and Veerathai Santiprabhob of the Bank of Thailand.

The letters formalise the banks’ shared interest in the potential establishment of local currency-settlement frameworks between the banks’ respective countries.

Indonesia and Thailand agreed to begin exploring the possibility of expanding the scope of their existing framework, according to a joint statement.

The use of local currencies in settlement of trade and other matters is seen as reducing transaction costs and foreign-exchange risks, particularly amid current volatility in advanced economies.

Moreover, the wider use of local currencies enhances economic and financial integration in Southeast Asia and spurs development of the foreign exchange and financial markets.

“Progress towards greater financial integration in the region is a welcome development as we witness the expansion of similar arrangements that were launched in 2017, namely the Memoranda of Understanding concluded between Bank Indonesia and Bank Negara Malaysia and between Bank Indonesia and Bank of Thailand,” according to the statement.