Financial crises have shown the need for pools of emergency liquidity -- and the limits of some kinds of lending and borrowing. Learn more about why the world needs to reform its financial safety nets.
Asian economies have around 75% of the world's foreign exchange reserves (excluding gold) and about 23% of global financial assets.
Asia is home to the largest savings pool in the world and is a net lender to industrialized countries.
Asia attracted nearly 80% of all global portfolio investments to emerging market economies in the 2000s.
Global and regional financial safety nets are essential in a world of interlinked financial markets and volatile capital flows.
The 1997/98 financial crisis prompted ASEAN+3 countries to launch the Chiang Mai Initiative in 2000 to provide emergency liquidity.
The initiative began as a bilateral currency swap facility but after the 2008/09 crisis it expanded into a multilateral facility (CMIM).
The CMIM with $120 billion is the world's 2nd largest regional financial facility after the European Financial Stability Facility.
The borrowing limit for individual ASEAN countries under CMIM is $12.5 billion.
Countries have shown an aversion to tapping the Chiang Mai facility because of its IMF-links and borrowing conditions.
The 2008 global crisis highlighted the weakness of traditional IMF lending and the need for a single, global financial safety net.
The G20, which leads coordination of global financial policies, has about 85% of the world's GDP and about 65% of the world's population.
An international lender of last resort facility, managed by IMF, funded by central bank swaps and cofinance could address systemic crises.
IMF is looking at setting up a Global Stabilization Mechanism for use when a crisis breaks out in many countries simultaneously.