ASEAN Financial Integration

Author/Editor:

Geert Almekinders ; Alex Mourmouras ; Jianping Zhou ; Satoshi Fukuda ; Yong Sarah Zhou

Publication Date:

February 23, 2015

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

The establishment of the ASEAN Economic Community (AEC) at end-2015 has brought into sharp focus the issue of financial and economic integration in the region. This paper takes stock of ASEAN’s financial integration and prospects. ASEAN integration could accelerate in the years ahead; it will likely be a safe, gradual process consistent with the “ASEAN way” of consensus decision-making. Properly phased and sequenced, closer financial integration has the potential to help increase real incomes and accelerate real convergence within ASEAN and narrow the region’s gap with advanced Asia. Realizing the promise of financial integration will require ASEAN countries to make long-term investments in financial infrastructure. Policymakers can draw on the experience of their more advanced peers and of other regions. Gradualism and safeguards should not be excuses for inaction or financial protectionism. Reliance on flexible policy frameworks and a strengthened and tested regional financial safety net should be part of the agenda. Closer engagement with the Fund could also help.

Series:

Working Paper No. 15/34

Subject:

English

Publication Date:

February 23, 2015

ISBN/ISSN:

9781484386491/1018-5941

Stock No:

WPIEA2015034

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

43

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