ADB President Urges Asia to Support Efforts to Reform Global Financial System

SEOUL, REPUBLIC OF KOREA – Asian Development Bank (ADB) President Haruhiko Kuroda today urged Asian countries to actively and collectively participate in international efforts to reform the global financial architecture.

“It is critically important that Asia actively participates and takes its rightful place at all levels of governance – to ensure the new financial architecture matches the needs of globalized finance with the region’s financial development agenda,” said Mr. Kuroda, at a high-level international conference hosted by ADB together with the Korean Financial Services Commission and Ministry of Strategy and Finance.

The two-day conference “Global Crisis Response: Financial Policy Response and Lessons from the Crisis” aims to draw lessons from the global financial crisis and help Asian policymakers tackle the challenges of safeguarding financial stability.

Mr. Kuroda's statement came a few days after the G20 leaders vowed to get tough on financial regulation, and agreed to redouble efforts to prevent future crises.

“We must work together to put these ambitious declarations into action ... We need to link Asia’s regulatory systems to the reformed global architecture,” said Mr. Kuroda.

A new framework should include appropriate changes in governance that reflect the increased influence of emerging economies, he said.

Mr. Kuroda noted that Asian authorities need to design an effective and coherent framework for cross-border crisis management and contribute to the international regulatory and surveillance system.

The ADB President also reiterated ADB’s call for the establishment of an Asian Financial Stability Dialogue that would bring together central bank governors, finance ministers, and market regulators to coordinate regulatory development, promote financial stability and better articulate joint positions in international gatherings such as the G20.

Mr. Kuroda added that Asia needs to play a major role in helping correct global macroeconomic and structural imbalances. “In particular, Asian countries need to rebalance sources of growth by promoting greater domestic and regional demand and reducing reliance on external markets. And this must be done collectively,” he said.

About ADB