Home 
Publications Catalog Online Publications Document
Annual Report 2002 : Operational Priorities and Performance
Finance, industry and tradeFinancial sector issues continued to impact on the region's development in
2002. Many countries affected by the Asian financial crisis and transitional
economies continued efforts to restructure their banking systems to achieve
financial stability and ensure that new lending is based on sound commercial
principles. Banking supervision is being improved in several DMCs in line with
the Basel Core Principles to prevent future systemic crises. The Basel Capital
Accord was discussed at a seminar in the 35th Annual Meeting in May 2002 (see
http://www.adb.org To reduce dependence on short-term bank financing for long-term investments and enhance allocation efficiency, several DMCs also sought to further develop their capital markets. ADB supported efforts to strengthen the regulation and supervision of securities markets in accordance with international standards and practices. ADB also supported efforts to improve market infrastructure, introduce more stringent corporate governance requirements, establish a policy environment that ensures efficient allocation of domestic savings, and develop an institutional investor base. Financial governance regimes in several DMCs are being strengthened by introducing international accounting standards and more stringent financial disclosure requirements. Also, in 2002, ADB increased its trade-related technical assistance to help its DMCs participate in the new trade round and address various difficulties arising from the implementation of the World Trade Organization (WTO) agreements. Several regional technical assistance projects focused on capacity building for WTO agreements, trade facilitation, trade promotion, and cooperation. Addressing Financial, Industry, and Trade issues ADB addressed financial sector issues in several of its developing member countries (DMCs). The Financial Sector Program (Subprogram II) loan in Cambodia resulted in the adoption of a system and supported policy sector reform efforts in several transition economies for the early identification of problem banks, and improved surveillance and inspection procedures for banking supervision. Accounting and auditing standards and an enforcement system are also expected. In the Lao People’s Democratic Republic (Lao PDR), policy dialogue, in conjunction with the Banking Sector Reform Program loan, led to the adoption of a performance-based operational and financial restructuring program for state-owned banks. Amendments to the capital markets, pension, and insurance laws to strengthen supervision and regulation and provide for international best practices and standards are being promoted in Indonesia’s 2002 Financial Governance and Social Security Reform Program (Phase 1). Pakistan’s Financial (Nonbank) Markets and Governance Program seeks to strengthen investor confidence through improved governance, transparency, and investor protection. ADB supported policy dialogue for a legal framework for antimoney laundering in Indonesia, and assisted Fiji Islands, Indonesia, and Philippines in establishing financial intelligence units in line with the reporting and monitoring requirements under their respective antimoney laundering legislation. In the People’s Republic of China (PRC) and Thailand, ADB provided assistance to facilitate the transformation of pension systems from unfunded pay-as-you-go systems toward fully funded defined contribution systems. In Indonesia, social protection is being strengthened through measures that seek to improve governance, supervision, and regulation of pension funds and mandatory social insurance programs. ADB is promoting the development of real sectors in Bangladesh, Indonesia, Pakistan, Samoa, and Viet Nam, through assistance for creating more conducive policy, legal, regulatory, and institutional frameworks for small- and medium-sized enterprises (SMEs). Productivity enhancements, greater market access, and skills improvements need to be in line with financial sector development to achieve real sector growth. Technical assistance to Indonesia, Philippines, and Samoa supported the provision of SME finance by developing sustainable credit enhancement and information mechanisms. ADB also expanded its support for subregional project development facilities. In 2002, regional technical assistance was approved to promote SME growth in the subregion of Bangladesh, Bhutan, (northeast) India, and Nepal. In the Greater Mekong Subregion (GMS), Cambodia, Lao PDR, Thailand, and Viet Nam agreed on the mechanisms needed to harmonize customs declaration documents, and on the inspection procedures and the evaluation criteria for use along the GMS economic corridors. Technical assistance projects were initiated for enforcing World Trade Organization rules by the judicial system in the PRC, regional customs cooperation in the Kyrgyz Republic, and a trade policy review in Mongolia. In addition, two loans were approved for the Kyrgyz Republic and Tajikistan to strengthen the governance and operations of customs organizations, improve the customs legal and regulatory framework in line with international standards, and develop a mechanism for regional cooperation. In 2002, ADB approved 9 financial sector, 2 trade sector, and 1 SME-related loans totaling $735 million; and 22 financial sector, 9 trade sector, and 11 SME-related technical assistance projects totaling $26.3 million.
|
© 2009 Asian Development Bank Privacy | Terms of Use |
 Top of page |
Back