Time of event
Changes in monetary policy by major central banks have the potential to prompt an outflow of capital from Asia, which could consequently harm its financial stability. The impact of planned increases in policy rates in the United States (US) may spill over into Asia, push up long-term financial costs, and strengthen the US dollar. For the moment, a series of policy rate hikes in the US has not yet triggered a repeat of the 2013 taper tantrum. Thanks to Asian policy makers’ attempts to mitigate the destabilizing effects of the US’ policy changes, the interest rate gap between Asia and the US tends to widen. Consequently, Asia is experiencing a short-term inflow of capital rather than an outflow.
An increase in long-term interest rates could also lead to higher effective discount rates, which could lower asset valuations and weaken the balance sheets of financial institutions and corporations. From the balance-sheet point of view, nonfinancial Asian corporations and governments are, on average, less exposed to foreign-denominated debt than other regions. However, intraregional discrepancies and variations in indebtedness in Asia should be considered. Some jurisdictions are less reliant on external financing than other emerging markets, while other jurisdictions still show a relatively high foreign currency share in nonfinancial corporate debt. Moreover, economic nationalism will further impair financial soundness of state-owned companies.
New and emerging digital technologies, including distributed ledger technology, cloud computing, and artificial intelligence are allowing for faster, more convenient, and cost-effective financial services. New financial products and business models are also targeting previously excluded market segments such as financially vulnerable groups in developing countries, while offering higher returns to institutional investors. At the same time, those new products and business models may entail negative externalities in financial markets in the longer term. Historically, some market innovations have changed the nature of competition and brought unintended consequences.
The Roundtable on Capital Market and Financial Reform in Asia, established by ADBI and the Organisation for Economic Co-operation and Development (OECD) in 1999 as a response to the Asian financial crisis, is a forum for discussion among capital and financial market regulators, policy makers, experts, practitioners, scholars, and international organizations on issues related to capital market and financial reform in Asia. This year’s roundtable will discuss key issues in capital flows and capital market development in Asia, financial technology (fintech) developments and regulatory responses, and financing of green infrastructure investment.
- Promote understanding of the importance of capital market and financial reform in Asia.
- Discuss capital flows and capital market development in Asia, fintech developments and regulatory responses, and financing of green infrastructure investment.
About 80, including participants, speakers, and ADBI and OECD staff.
- Promotion of good governance policies and practices in financial sector and capital market development, particularly on issues related to
- recent trends, challenges, and prospects for capital flows of the Asian economies;
- capital market development in Asia;
- fintech developments and regulatory responses; and
- financing of green infrastructure investment.
- Enhanced dialogue and networking among government agencies, international organizations, and the private sector to promote capital and financial market development through knowledge sharing among policy makers and practitioners in the region.
- Summary of proceedings, full report of the roundtable (to be developed with OECD), and relevant conference presentations and other materials, to be uploaded to ADBI and OECD websites.
How to get there
How to register
By invitation only.
Organisation for Economic Co-operation and Development (OECD)