Going Regional: How to Deepen ASEAN's Financial Markets | Asian Development Bank

Going Regional: How to Deepen ASEAN's Financial Markets

Publication | January 2012
Going Regional: How to Deepen ASEAN's Financial Markets

For financial markets to play a significant role in the realization of a rich, inclusive and harmonious ASEAN region in the future, the first priority in market development should be a regional corporate bond market.

This study examines key issues in the further development of financial markets in the Association of Southeast Asian Nations (ASEAN)1 and ASEAN+32 countries. The trade-off between the geography of information and its access and cost implications, versus the effects of externalities of wider financial market networks makes the case for regional integration of corporate bond markets more compelling. The authors propose three bold proposals in support of regional corporate bond market development and financial deepening.

1 ASEAN includes Brunei Darussalam, Cambodia, Indonesia, the Lao People's Democratic Republic, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Viet Nam.
2 ASEAN+3 economies include ASEAN countries plus, the People's Republic of China, Japan, and the Republic of Korea.


  • Introduction
  • The Recycling of Savings
  • The Downside of Capital Mobility
  • The Role of Capital Controls
  • Financial Market Development in ASEAN Countries
  • Why Regional Instead of Global? The Tug-of-War between the Geography of Information and Network Externalities
  • The Way Forward