The Association of South East Asian Nations (ASEAN) is comprised of ten countries: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. It was created on 8 August 1967 to promote the economic growth, social progress and cultural development in the region through mutual cooperation and enterprise. The ASEAN Financial Integration Framework was agreed in 2011 to encourage greater
cross border
financial services and was further supported by the ASEAN Financial Integration Post 2015 and ASEAN 2025 Vision documents. The agenda had been on regional financial integration with specific attention to banking.
This assignment focus on three countries which are reasonably matched in terms of local banks but each
were
concerned about whose banks would benefit most from any trilateral deregulation. They are Malaysia, Singapore
and
Thailand. Based on their representation within the region, it is identified that the following ten ASEAN banks are most likely to benefit from the financial integration.
Bank ID Country Bank Name
0 Malaysia CIMB
1 Malaysia Maybank
2 Malaysia RHB
3 Malaysia Public
4 Singapore DBS
5 Singapore OCBC
6 Singapore UOB
7 Thailand Bangkok Bank
8 Thailand Krung Thai Bank
9 Thailand Siam Commercial
1) Discuss how the banking sector of Malaysia, Singapore
and
Thailand are affected by the financial integration.
2) Using financial information for the last 5 years from the Bureau van Dijk’s Orbis data base (available from the Monash Library), you are required to examine ONE (see instruction below to know which is your bank) of the ten banks for any changes in performance or trends. As these banks were all listed on the stock exchanges in their respective countries, market data might be used, too. Your team should prepare several charts showing your banks relative performance over the last five years in respect to their ROE, NIM, CIR, NPL, and CAR ratios.
3) Provide your explanations of any change in your bank’s performance. On a country basis, were there any characteristics in terms of the banking sector or country that might explain any shift in performance?
4) Compare the performance of your bank again other banks within your bank’s country as well as other banks within the region.
5) Given the information that you have
gather, would you consider The ASEAN Financial Integration Framework a successful initiative and why?