In the previous issue of the Asean Banker, I spoke on the need for greater participation and involvement of all members of the Permanent Committees in order to see through the implementation of the initiatives decided on at the last ASEAN Banking Council Meeting on 20 November 2009 in Cambodia. I am delighted to announce that even whilst this latest issue of the Asean Banker is sent to the printers, the Permanent Committee on Finance Investment and Trade (COFIT), chaired by the Association of Banks in Singapore (ABS), has put together a workshop on ISDA/CSA and Basel II for all members of the ASEAN Bankers Association (ABA). This workshop will be held in Singapore on 26 and 27 May 2010. The speakers for the workshop will be from the three local banks in Singapore, as well as representatives from ISDA and Standards & Poor. Thus far, more than 50 participants from the various ASEAN countries have signed up for the workshop. ABS/COFIT have put in much effort to meticulously plan for this workshop, and I believe that participants will be able to enjoy and benefit from this one and a half-day of sharing their experiences, difficulties and challenges encountered whilst implementing the Basel Guidelines. On another issue relating to collaboration, it is also heart-warming to note the support given to the International Symposium on Sustainable Finance which was held on 29 March 2010 in Singapore. There were more than 100 participants at this Symposium. ABA through COFIT, feels privileged to be given the opportunity to support this event. We are reminded that banks must make the effort to follow socially responsible lending practices to avoid further crises and broader issues down the road. It is no longer sufficient for banks to generate profits to boost the economy. Banks need to encourage borrowers to also review the social and environmental risks of their projects before agreeing to underwrite them. Banks could perhaps offer more incentives to reduce borrowing costs of those companies which agree to observe rigorous environmental controls, while making borrowing more expensive for those who do not. Having said this, it is not easy unless Banks have the same collective stance towards this issue. In order to achieve this single mindedness to consciously uphold social and environmental responsibility, cooperation and collaboration are still the key ingredients.
May 2010