MANILA, Philippines - Global macroeconomics and its influences on Asian banks were extensively discussed at the 30th Asian Bankers Association (ABA) general meeting held in Ulaanbaatar, Mongolia last Sept. 12 and 13.
ABA chairman Lorenzo V. Tan said the association issued two position papers as a policy direction for the Asian banks.
The first position paper urged member nations to develop more financial service for inclusive growth of their respective economies.
ABA noted the numerous challenges faced by banks and financial institutions responsible for the supply of financial services as well as the people at the bottom of the pyramid who have created a huge demand for the financial services. The key challenge faced by banks and financial institutions is the commercial viability and the business sustainability in such services.
The second paper discussed the implications on Asian banks of the Foreign Account Tax Compliance Act (ACT) of the United States, which require foreign financial institutions to report to the US Internal Revenue Service accounts held by US nationals in exchange for being exempt from a 30-percent tax on US-sourced income.
“ABA member banks were urged to start its dialogue with their respective governments as soon as possible on the best approaches for mitigating the adverse impact on their operations,†Tan, who is also the president and chief executive officer of the Rizal Commercial Banking Corp. (RCBC), said in an ABA statement.
The International Finance Corp., the private investment arm of the World Bank, likewise discussed with the assembly the significance of sustainable energy financing in the region.
Energy financing is taking a major regional role in regional and country specific financing as the regional marches towards global leadership in terms of growth.
“Financial institutions can promote and discover new business opportunities in more energy efficient productions and technologies, leading to development of the low carbon economy,†IFC noted.