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East Asian Finance: The Road to Robust Markets

September, 2006
East Asian Finance - The Road to Robust Markets argues that East Asia needs and is well positioned to enhance its financial systems to meet the growing and increasingly sophisticated demand for financial intermediation in the region.

To make the most of the $1.6 trillion in foreign reserves and $9.6 trillion in domestic financial sector assets, East Asia needs to further diversify its financial markets by developing its securities markets .

The agenda to strengthen securities markets and a more robust financial system overall will require concerted efforts on three fronts:

Strengthening implementation of corporate governance and information disclosure
Developing complementary or supporting infrastructure such as repo markets, margin trading and derivatives.
Developing a broader and more diversified investor base.

East Asian Finance - The Road to Robust Markets

MAIN FILES

Presentation(299kb pdf)

Full report:

Volume I: Main Reportby Swati Ghosh (2.3mb pdf)
Also by chapter

Volume II: Selected Issuesedited by Ismail Dalla (1.9mb pdf)

Order a printed copy here

Press Release

Explore selected topics in more detail from the report:

2. Regional Integration

Regional cooperation can be a powerful means to deepen and diversify financial markets through integration, but it needs to be complemented by actions and measures at the domestic level.

Summary

Full chapter(217k pdf)

4. Banking Sector

Banking remains the dominant financial segment in the East Asian countries, with banking sector assets accounting for almost 60 percent of GDP on average. Thus the performance and issues pertaining to the banking sector continue to be of paramount importance to the overall financial systems in the region. With an appropriate regulatory and policy environment, East Asian banks could become more efficient and serve a wider set of needs, while strengthening their soundness.

Summary

Full chapter(333k pdf)

5. Securities Markets

The main challenge in further developing the securities markets is to enhance their liquidity and efficiency. Sizable progress has been made: equity market capitalization has almost tripled for the region as a whole since the crisis, and the value of bonds outstanding has almost quadrupled, since 1997. But significant challenges remain.

Summary

Full chapter(272k pdf)

6. Institutional Investors

The investor base is a key element in supporting the development of capital markets. Assets of institutional investors in the region have grown over the past few years and now account for about 45 percent of the region’s GDP in aggregate. However, there is scope for further growth in institutional assets and for institutional investors to play a greater role in capital market development. For retail investors, it is important to develop the mutual fund industry.

Summary

Full chapter(248k pdf)

Volume I by chapter

Download the chapters from Vol.I (main report):

	Table of contents(82kb pdf)

	Overview(242 kb pdf)


1)	Moving Toward a More Robust and Diversified Financial System(173kb.pdf)

2)	Regional Cooperation as a Means to Diversify Financial Markets(217kb.pdf)

3)	Building Better Institutional Infrastructure(238kb.pdf)

4)	Fostering an Efficient and Sound Banking Sector(333kb.pdf)

5)	Deepening the Securities Markets(272kb.pdf)

6)	Strengthening the Investor Base(248kb.pdf)

7)	Developing Sound Markets for Risk Sharing(268kb.pdf)

8)	Dealing with Growing Linkages Across Markets(192kb.pdf)

Appendix 1(178kb.pdf)

Appendix 2(147kb.pdf)

Appendix 3(151kb.pdf)

Endnotes(130kb.pdf)

References(534kb.pdf)

Website usage agreement

Multimedia

Swati Ghosh - Homi Karas

Press briefing: Webcast - Transcript
Photos
Video interview with authors
Podcast