ASEAN Financial Integration

IMF Working Papers, February 23, 2015

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ASEAN Financial Integration

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Bibliographic details

• Authors: Gerard J Almekinders, Alex Mourmouras, Jianping Zhou, Satoshi Fukuda, Yong Sarah Zhou
• Published: February 23, 2015
• Series: IMF Working Papers
• DOI: https://doi.org/10.5089/9781484386491.001

Summary and main findings

• The establishment of the ASEAN Economic Community (AEC) at end-2015 brought into sharp focus financial and economic integration in the region.
• The 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.

Policy recommendations and institutional implications

• Gradualism and safeguards should not be excuses for inaction or financial protectionism.
• Reliance on flexible policy frameworks should be part of the agenda.
• A strengthened and tested regional financial safety net should be part of the agenda.
• Closer engagement with the Fund could also help.

Subject coverage and keywords

• Subject: Balance of payments, Banking, Capital account, Capital account liberalization, Capital flows, Financial integration, Financial markets, Financial sector development
• Keywords: AEC framework, ASEAN, ASEAN banking framework, ASEAN banking integration framework, ASEAN banking link, ASEAN capital account integration agenda, ASEAN capital account liberalization, ASEAN connectivity, ASEAN country, ASEAN member states, ASEAN nation, ASEAN policymaker, Asia and Pacific, Capital account, Capital account liberalization, capital flows, capital market, Europe, Financial integration, Financial sector development, financial sector liberalization, Global, WP

Content in this bundle

• _wp1534 - Section III discusses benefits of further liberalization and regional integration in ASEAN
  • _wp1534 - Section III discusses benefits of further liberalization and regional integration in ASEAN (Markdown version)
  • _wp1534 - Section III discusses benefits of further liberalization and regional integration in ASEAN (PDF)