Table of Contents

Global Shock, Risks, and Asian Financial Reform

Global Shock, Risks, and Asian Financial Reform

Edited by Iwan J. Azis and Hyun S. Shin

The growth of financial markets has clearly outpaced the development of financial market regulations. With growing complexity in the world of finance and the resultant higher frequency of financial crises, all eyes have shifted toward the current inadequacy of financial regulation. This book expertly examines what this episode means for Asia’s financial sector and its stability, and what the implications will be for the region’s financial regulation. By focusing on legal and institutional frameworks the book also elaborates on various issues and challenges in terms of how financial liberalization can maximize the benefits and minimize the risks of crisis.

Chapter 6: Addressing systemic risk in East Asia: financial regulatory design

Rolf H. Weber, Douglas W. Arner, Evan C. Gibson and Simone Baumann

Subjects: economics and finance, asian economics, financial economics and regulation, money and banking

Extract

The global, Eurozone, and Asian financial crises have underlined the risks and the importance of appropriate regulatory design and coverage for financial stability (Cecchetti et al. 2009, p. 2). In the wake of the global financial crisis (GFC), the G20 and the Financial Stability Board (FSB) and its constituents – such as the Basel Committee on Banking Supervision (BCBS), the International Organization of Securities Commissions (IOSCO), and the Joint Forum – have or are in the process of developing international regulatory standards and guidance in relation to financial regulation and financial stability. There is thus an emerging corpus of international best practices for financial regulation. At the same time, this corpus provides little guidance with respect to overall design of a financial regulatory system to meet the specific needs and risks of a given domestic financial system. In East Asia, which is characterized in this chapter as ASEAN13, domestic financial systems tend to be dominated by small numbers of financial institutions, particularly banks, which are large in the context of individual financial systems.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information