The Impact of Global Liquidity on Financial Landscapes and Risks in the ASEAN-5 Countries
IMF Working Papers, September 29, 2015
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- The Impact of Global Liquidity on Financial Landscapes and Risks in the ASEAN-5 Countries
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Bibliographic details
- Authors: Tao Sun
- Published: September 29, 2015
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781513543734.001
Summary of purpose and main finding
- Purpose: Analyze the transmission of global liquidity to the ASEAN-5 countries (ASEAN-5) and assess the impact on financial landscapes and risks to financial stability.
- Main finding: Global liquidity transmission and changing financial landscapes have contributed to increases in risks to financial stability in ASEAN-5.
Detailed findings on transmission and risks
- Global liquidity transmission has affected ASEAN-5 financial systems and contributed to heightened financial sector risk.
- Changes in the financial landscape, notably nonbank development and evolving securities markets, have amplified vulnerabilities.
- Specific risk channel identified: diminished market liquidity (referred to as "diminished market liquidity" and "market liquidity" in keywords), implying potential for liquidity shortage during tightening episodes.
Policy recommendations
- Prepare for possible liquidity tightening.
- Strengthen regulation of nonbanks (referred to as "nonbank", "nonbank development", "nonbanks hereafter" in keywords).
- Establish a comprehensive financial stability framework.
- Note: The paper indicates that "a number of couontries are well-advanced in this process."
Subjects and keywords (as provided)
- Subjects: Asset and liability management, Financial institutions, Financial sector policy and analysis, Financial sector risk, Financial sector stability, International liquidity, Liquidity, Securities
- Keywords: ASEAN-5, asset, asset-to-GDP ratio, credit-to-GDP ratio, diminished market liquidity, financial landscape, Financial sector risk, Financial sector stability, financial stability, Global, global liquidity, International liquidity, Liquidity, liquidity shortage, liquidity transmission, market, market liquidity, nonbank, nonbank development, nonbanks hereafter, Securities, WP
Disclaimer (as provided in the source)
- "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."
IMF Working Papers — The Impact of Global Liquidity on Financial Landscapes and Risks in the ASEAN-5 Countries (Tao Sun, September 29, 2015).