Redefining Strategic Routes to Financial Resilience in ASEAN+3

The book explores how regional financial cooperation can support greater financial resilience in ASEAN+3 amid rapid economic and financial development and technological change. It discusses lessons learned from the Asian financial crisis and sets out policy considerations to promote a more resilient financial future.

Format: Paperback / softback
Length: 420 pages
Publication date: 30 May 2022
Publisher: Asian Development Bank

The rapid economic and financial development, as well as technological change, have significantly impacted the financial landscape of ASEAN+3, which encompasses the Association of Southeast Asian Nations (ASEAN) and the People's Republic of China, Japan, and the Republic of Korea. Despite impressive reforms, the region continues to face several challenges. These include deepening corporate bond markets, managing cross-border bank concentration risk, reducing dependence on the United States dollar, achieving sustainable infrastructure investments, addressing pension issues, and supporting fintech development.

To address these challenges, this edited volume emphasizes the potential for stronger regional financial cooperation. It explores lessons learned from financial cooperation since the Asian financial crisis and provides policy considerations to promote a more resilient financial future.

One key area of focus is the development of regional financial markets. The book highlights the need for deeper and more integrated financial markets to facilitate cross-border capital flows and promote economic growth. It suggests measures such as improving market infrastructure, promoting regulatory harmonization, and encouraging financial innovation to enhance market efficiency and stability.

Another important aspect is the reduction of dependence on the United States dollar. The book recognizes the importance of diversifying the region's foreign exchange reserves and promoting the use of local currencies in trade and investment. It suggests measures such as developing regional currency swap arrangements, promoting bilateral currency agreements, and encouraging the use of digital currencies to facilitate cross-border payments and reduce transaction costs.

Sustainable infrastructure investments are also crucial for the region's long-term economic growth. The book highlights the need for balanced and sustainable infrastructure development to support economic activity and improve living standards. It suggests measures such as public-private partnerships, innovative financing mechanisms, and regulatory frameworks to promote infrastructure investment and ensure its efficient use.

Pension issues are another significant challenge facing ASEAN+3. The book discusses the need for comprehensive pension reforms to ensure the financial stability of retired individuals and reduce the burden on government finances. It suggests measures such as increasing pension coverage, promoting private pension savings, and improving pension fund management to enhance the sustainability of pension systems.

Fintech development is also a key area of focus in the book. The region has witnessed a rapid growth of fintech companies, which offer innovative financial services and products. The book suggests measures such as promoting regulatory frameworks that support fintech innovation, providing access to financial services for underserved populations, and fostering collaboration between fintech companies and traditional financial institutions to enhance financial inclusion.

In conclusion, this edited volume highlights the potential for stronger regional financial cooperation to support greater financial resilience in ASEAN+3 amid rapid economic and financial development and technological change. By developing deeper financial markets, reducing dependence on the United States dollar, promoting sustainable infrastructure investments, addressing pension issues, and supporting fintech development, the region can enhance its financial stability and promote economic growth. The lessons learned from financial cooperation since the Asian financial crisis provide valuable insights for policymakers and stakeholders to build a more resilient financial future.

Weight: 333g
Dimension: 229 x 152 (mm)
ISBN-13: 9789292691875