Finance Sector Development
In the Spotlight
Softer growth prospects for the People’s Republic of China (PRC) and India, and a slow recovery in the major industrial economies, will combine to push growth in developing Asia for 2015 and 2016 below previous projections, says the ADO Update 2015.
Fewer than 27% of adults in developing Asia have an account in a formal financial institution, and only 33% of enterprises report having a line of credit or a loan from a financial institution. This paper provides an analysis of financial development and inclusion in developing Asia.
As long as the People's Republic of China continues to pursue market reforms it will remain the largest contributor to global economic growth, says ADB's Chief Economist Shang-Jin Wei.
The financial system is the lifeline of a country’s economy. It creates prosperity that can be shared throughout society and benefit the poorest and most vulnerable people. Financial sector and capital market development, including microfinance, small and medium-sized enterprises, and regulatory reforms, is vital to decreasing poverty in Asia and the Pacific. Since the Asian financial crisis in 1997-1998, the region’s financial sector has strengthened significantly. However, it still lags substantially behind that of developed economies and room to grow.
$6.7 trillionEmerging East Asia's local currency market at the end of March 2013, a year-on-year expansion of 12.1%
$2.59 billionADB's total microfinance approvals as of June 2014
40% estimated portion of the population in South Asia not served by banks