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.


Ramesh Subramaniam

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


It is cliche to note that financial sector development is a key ingredient for overall economic development and growth. However, there has been a long-standing debate on how critical it is for growth. Regardless, a well-designed, optimal, and effectively functioning financial sector regulatory and supervisory framework is important. Here again, what is the ‘optimal’ regulatory framework has always been under scrutiny, including most recently in the aftermath of the global financial crisis. Part V looks at various sub-sectors of the financial sector in the context of its broader development, as well as sector-related challenges in the Asia and Pacific region. This background note summarizes the key issues relating to financial supervision, with some discussion on regulation. Table V.1 presents a qualitative assessment of the basic features of financial sector development across the sub-regions of developing Asia. The first point to note is that the region is not homogeneous. As a result, there is a fair degree of variation in financial regulatory and supervisory approaches in comparison with global standards.