Information about Asia and the Pacific Asia y el Pacífico
Back Matter

Back Matter

Author(s):
Ratna Sahay, Cheng Lim, Chikahisa Sumi, James Walsh, and Jerald Schiff
Published Date:
August 2015
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    Index

    Page numbers followed by b, f, or t refer to boxed text, figures, or tables, respectively.

    A

    • Access to financial services
      • current indicators, 26, 196t
      • financial sector deepening for infrastructure development, 181, 192–198
      • future demand, 3
      • mobile banking technology and, 26
      • for small- and medium-sized enterprises, 9, 25–26
    • Agricultural Bank of China, 13
    • ASEAN+3, 62, 167, 206b, 232
    • ASEAN-4, 212–213, 226–227b
    • ASEAN Economic Community, 4–5, 7–8, 204, 205, 218–219, 233
    • AsiaBondsOnline, 62
    • Asian Bond Fund-2, 62
    • Asian Bond Market Forum, 62
    • Asian Development Bank, 62
    • Asian Dollar Market, 150
    • Asian financial crisis (1997)
      • Asian stock market and, 48
      • drivers of capital flows after, 239–241, 260f
      • effects on advanced and emerging economies, 267
      • policy responses to, 6, 29, 108–109, 123–124, 125–127t, 265, 266–267
      • sources of, 61–62
    • Association of Southeast Asian Nations
      • approach to further integration, 216–217, 233
      • banking sector integration, 213–214, 214f
      • benefits and risks of further liberalization and integration, 203–219
      • bond yield patterns, 215, 216f
      • capital account openness, 226–227b
      • credit to private sector in, 217–218, 218t
      • current account balances, 225–228, 228t
      • economic performance, 203, 207, 208–209t, 210f
      • exchange rate regimes, 222t
      • financial integration to date, 204
      • foreign direct investment flows, 211–213
      • future challenges, 204
      • future prospects, 3, 4–5, 7–8, 204 GDP, 3
      • IMF collaboration in risk mitigation, 232
      • interest rate trends, 215, 216f
      • lessons from integration experience of European Union, 221–223, 231–232, 233
      • member characteristics, 203, 204
      • population, 3
      • portfolio investment, 214–215, 215f
      • rationale for further integration, 216, 232–233
      • reform initiatives to promote further integration, 205–206b, 219–221
      • regulatory coordination, 167
      • risk management initiatives, 206b
      • strategies for safe financial integration in, 229–232
      • trade patterns within, 207–211, 210f, 211f
      • See also ASEAN Economic Community
    • Australia, 144
      • financial sector characteristics, 11, 13
      • financial sector regulation, 280
      • response to global financial crisis, 29

    B

    • Bangladesh, 180, 280
    • Banking sector
      • assets, 11, 136–137, 137f
      • balance sheets, 118
      • characteristics of, in Asia, 9, 11–12, 271–272
      • composition of non-interbank claims, 24t
      • credit tightening after global financial crisis, 89
      • cross-border lending, 25
      • deposit-to-credit ratios, 23, 24t
      • domestic and international interconnectedness, 140–142
      • foreign-owned institutions, 13, 164–166, 165f, 278–279, 279f
      • future of ASEAN integration, 219–220
      • future prospects, 9–10, 137–140, 282
      • global systemically important institutions, 13, 164–165, 166, 168–169, 265, 273, 278, 284, 285
      • government ownership, 13, 27–28
      • growth risks, 218, 230
      • income distribution, 30
      • interbank linkages, 30–31
      • Japan’s, lending by, 244, 245–246b
      • lending profitability, 139f
      • lessons from European Union liberalization experience, 221–223, 231–232
      • mobile technology, 26, 27f, 36
      • private sector credit intermediation, 22–25
      • regional and global integration, 213–214, 214f
      • resolution frameworks, 93, 125, 127, 169, 222, 223, 272, 275–276, 278, 282–283
      • risk management in integration, 229–232
      • size of institutions, 272–274
      • sources of loans to Asia, 238, 240f
      • “too important to fail” institutions, 265, 266, 272–274, 278, 285
    • Basel Core Principles, 274
    • Basel III, 23, 138, 197, 266, 267–270, 268t, 269t, 278, 283
    • Bond markets
      • access, 79–82, 92–93, 94t
      • Asian financial crisis (1997) and, 61–62
      • corporate, 25, 60, 71, 74, 74f, 82–91, 84t, 85t, 90f, 91f, 96–97, 99, 101–102f, 283
      • currency denomination, 64, 64f
      • current state of, 9, 10, 16–18, 19–21, 19f, 60, 136
      • dematerialization of securities, 93–94
      • derivatives markets and, 96–97
      • determinants of yield, 76–79, 79t, 80–81f
      • evolution of issuance quantity and quality, 82–91, 83f, 84t, 86–87f, 88f
      • foreign investment in Asia’s, 6, 60, 61, 63, 71–74, 72f, 73f, 92–93, 95, 99, 196
      • future challenges and opportunities, 6, 17, 61, 92–99, 137–138
      • goals and outcomes of 1990s reforms, 59–60
      • infrastructure, 93–96, 100, 197–198
      • international comparison, 64, 65f
      • investor base, 60, 63–64, 69, 70f, 92–93, 99–100, 136
      • issuance in international financial centers, 154f, 155, 158–159, 159t
      • lending rates and yields in, 90f
      • liquidity, 18, 20f, 66–69, 67t
      • offshore currency trading and, 97–99
      • portfolio investments in ASEAN countries, 214–215, 215f
      • private sector financing, 25, 60
      • rationale for development of, 61–64
      • recommendations for reform, 99–100
      • regional integration, 95–96
      • returns, 64, 66f
      • shallowness, 21–22, 22t
      • trends in Asia, 16–17, 17f, 59, 60, 64–76, 64f, 65f, 66f, 89, 99, 111f, 151
      • U.S. tapering policy and, 111–112
      • yield trends in ASEAN, 215, 216f
    • Brazil, 15, 84
    • Brunei Darussalam, 212–213

    C

    • Cambodia
      • demographic trends and challenges, 181
      • foreign direct investment inflows, 212–213
    • Capital account openness
      • de jure indices, 132–133, 225, 226–227b
      • effects on future capital flows, 244–251
      • financial sector growth and, 132, 132t, 133–134, 135, 144–145
      • future of ASEAN, 223–229
      • international comparison, 244, 246f
      • macroeconomic management and, 231
      • measures of, 132–133
      • pace of liberalization, 228–229
      • purchasing power parity and, 144f
    • Capital flows
      • benefits of regional integration, 195–196, 223–229
      • composition, 237, 239f
      • demographic trends and, 141–142, 182–183, 190
      • determinants of, 235, 236, 261t
      • drivers of, after Asian financial crisis, 239–241, 260f
      • effects of capital account liberalization on, 244–251
      • financial sector deepening and, 251–252
      • as foreign direct investment, 212–213, 237
      • future challenges, 8, 235, 236, 258
      • future prospects, 204–207, 241–252
      • global interconnectedness, 33
      • patterns and trends, 8, 235, 236–238, 237f, 238f, 258
      • policies to reduce future risk from volatility in, 252–258, 259
      • policy responses to Asian financial crisis, 108–109
      • productive use of, 258
      • regional integration and, 252
    • Capital markets
      • bank regulation effects, 282
      • clearing and settlement risk, 95
      • current state of, 9, 16–22
      • derivatives trade, 74–76, 76f
      • foreign participation, 21, 21f, 63–64, 74–75, 138
      • future challenges for Asian economies, 4
      • growth patterns and trends, 16–17, 17f, 64
      • growth risks, 218
      • implications of demographic trends, 182
      • integration among ASEAN countries, 214–215, 215f
      • investor base, 14, 14f, 35
      • Singapore and Hong Kong, 156
      • structural reforms to foster development of, 63
      • transparency, 69, 93
    • Chiang Mai Initiative, 167, 206b, 252, 258
    • China
      • access to financial services in, 26
      • bank resolution in, 272
      • capital account openness, 145, 162–164, 247, 248–249b
      • capital flows to and from, 8, 237, 247–250, 251t
      • capital markets, 63, 66–67, 71, 84, 93
      • credit growth, 115–116
      • debt patterns, 116–118
      • demographic trends, 4, 7, 178, 181, 190
      • effects of capital account liberalization on Asian capital flows, 246–251
      • external debt, 118–119
      • financial sector characteristics, 13, 15–16, 24, 25, 28–29, 30
      • financial sector regulation, 278
      • financial sector supervision, 277
      • foreign direct investment flows, 248–249
      • future prospects, 3
      • government debt, 17, 21
      • Hong Kong SAR and, 151, 152–155
      • infrastructure development, 185
      • macroprudential policies, 253
      • nonbank financial sector, 281, 282
      • nonbank lending, 118
      • projected financial sector growth, 142, 143–144
      • Renminbi Qualified Foreign Institutional Investor scheme, 63–64
      • shock propagation modeling, 162, 163f
      • trade within ASEAN and, 210f, 211
    • Citigroup, 13, 166
    • Clearance and settlement issues, 95, 223
    • Consumption
      • future challenges for Asian economies, 7
      • trends in Asia, 3
    • Corruption, 135
    • Credit Guarantee and Investment Facility, 63
    • Credit markets
      • bond market growth after global financial crisis, 89–91
      • corporate lending, 24–25
      • credit to private sector in ASEAN, 217–218, 218t
      • cross-border bank lending, 25
      • effects of regulatory reform on lending rates, 270–271, 271f
      • effects of tighter regulation in, 282
      • government involvement, 28–29, 35–36
      • household lending, 24–25
      • intermediation of private sector credit, 22–26
      • lenders to Asia, 238, 240f
      • loan-to-value caps, 253
      • nonbank lending, 118
      • private credit-to-GDP ratio, 22, 23f
      • sectoral allocation, 29
      • trends in, vulnerability to shock and, 115–118, 116f
    • Crisis management frameworks, 272, 282, 285
    • Current account balances, 118–120, 119f, 225–228, 228t

    D

    • Demographics
      • challenges for Asian economies, 4, 7, 129, 177–179, 181–192
      • dependency ratios, 181, 182t, 183–184, 184f, 188–189
      • economic growth and, 190
      • financial product design for changes in, 196
      • financial sector growth and, 134–135, 142–143, 143f
      • financial sector policies to address challenges from trends in, 180–181, 198–200
      • implications for future capital flows, 252
      • infrastructure investment and trends, 189, 192–194
      • international interconnectedness of financial sector and, 141–142
      • patterns and trends, 181, 182t, 183f, 191t
      • working-age population trends, 178f, 181–182, 190
    • Deposit insurance, 35–36
    • Derivatives markets, 31, 61, 74–76, 76f, 77, 96–97, 98, 152, 284, 295

    E

    • East Asia Pacific Central Banks, 63
    • Education gap, 223
    • Electricity infrastructure, 179, 180
    • Euro area
      • cross-border capital flows, 33
      • international finance centers of Asia and, 167–168
      • investment in Asia, 238, 240f
      • lessons from financial sector liberalization, 221–223, 231–232
      • shadow banking sector, 15
      • size of financial sector, 10
    • Exchange-traded equity derivatives, 75
    • Exchange-traded funds, 31–32
    • Executives’ Meeting of East Asia Pacific Central Banks, 72, 167

    F

    • Fertility rate, 178
    • Financial sector
      • Basel III requirements, 267–270, 268t, 269t
      • benefits of deepening and integration, 192–194, 198–199, 217–219
      • capital account openness, 132–134, 144–145, 144f
      • capital flows affected by deepening of, 251–252
      • complexity, 30–32, 136–139, 145, 146
      • current features, 5–6, 9–10
      • demographic implications for future of, 141–143, 143f, 177–178
      • determinants of growth, 132t, 146
      • foreign reserves, 120
      • future challenges and opportunities, 4–5, 9, 35–36, 129, 142–145, 146
      • future growth prospects, 129–136
      • future of ASEAN, 217–223
      • global interconnectedness, 32–33, 33f, 34f, 145
      • government debt and, 136
      • government involvement, 26–29, 28f, 35–36, 277–278, 285
      • infrastructure development supported by, 177
      • institutional investor assets, 199t
      • institutions, 11–16, 12f
      • intermediation of private sector credit, 22–26
      • international comparison, 40f
      • liberalization, international interconnectedness and, 141
      • reforms in response to 1997 financial crisis, 125–127t
      • regional convergence, 131
      • resilience and vulnerability of Asian economies to shocks, 115–118
      • significance of, in Asia’s future growth, 4
      • size of Asia’s, 10, 11f, 130–131b, 132t
      • strategies for addressing demographic challenges, 180–181, 184
      • strategies for addressing infrastructure challenges, 180–181, 198–199
      • strategies for enhancing deepening and integration, 194–199
    • Foreign direct investment, 211–213, 212f, 237
    • Foreign exchange derivatives, 31, 74–75, 76f
    • Foreign exchange markets, 16, 18b, 31, 108–109
    • Foreign ownership
      • banking institutions, 13, 164–166, 165f, 278–279, 279f
      • government bonds, 21
      • restrictions, 213
    • Fund of Bond Funds, 63

    G

    • Global economy
      • Asian currency in foreign exchange markets, 18b
      • Asian interconnectedness, 33
      • Asian share, 3
      • effects of foreign investment on bond yields, 76–79, 79t, 80–81f
      • financial stability, 115, 115f
      • harmonization of financial regulations, 167
      • spillover effects from international regulation, 278–279, 284, 286
      • See also Global regulatory environment
    • Global financial crisis (2008), 22
      • Asian financial crisis and, 108–109
      • bond market performance and, 64–65, 71, 89
      • effects on Asian economies, 6, 28, 30, 107–110, 109, 123–124
      • effects on European economies, 222–223
      • policy responses in Asia, 29
      • recovery, 61
      • stock market performance and, 44, 48
      • vulnerability of Asian economies to repeat of, 122, 123t
    • Global regulatory environment
      • current compliance in Asia, 274, 275f, 284–285
      • future of Asian economies and, 8
      • spillover effects, 278–279, 286
      • See also Basel III
    • Global systemically important banks, 13, 164–165, 166, 168–169, 265, 273, 278, 284, 285
    • Governance and law
      • institutional development for financial sector growth, 135, 145
      • See also Regulation, financial
    • Government bonds, 10, 18, 67
      • bid-ask spreads, 68f
      • foreign ownership, 21
    • Government-owned banks, 13, 27–28
    • Growth
      • among ASEAN countries, 207, 208–209t, 210f
      • capital markets, 16
      • demographic trends and, 190, 191f
      • expectations for financial sector, 129–136, 142–145
      • future prospects, 7, 120–122
      • global financial crisis and, 108
      • government involvement in financial intermediation as restraint to, 277–278
      • infrastructure development and, 179, 184–185
      • of international finance centers in Asia, 157–159
      • intraregional trade and, 211
      • patterns and trends in Asia, 3
      • significance of financial sector in Asia’s, 4

    H

    • Hedge funds, 170
    • Hong Kong SAR, 10
      • capital markets, 66–67, 69, 74, 84
      • credit growth, 115–116
      • demographic trends and challenges, 181
      • financial sector characteristics, 11, 13, 16, 23, 25
      • foreign exchange market, 18b, 31
      • renminbi business in, 152–155
      • See also International finance centers of Singapore and Hong Kong
    • Household debt, 116–117, 117f
    • HSBC, 13, 166, 169
    • Human capital, 4

    I

    • India
      • capital account openness, 246
      • capital markets, 63–64, 69, 71, 84, 93
      • demographic trends and challenges, 181
      • external debt, 118–119
      • financial sector characteristics, 13, 15, 16, 23, 24, 25, 30–31, 271–272, 276
      • financial sector regulation, 278
      • financial sector supervision, 277
      • future challenges, 3, 7
      • government debt, 17, 21
      • inflation, 120
      • infrastructure development, 179
      • macroprudential policies, 253, 280
      • nonbank financial sector, 281
      • projected financial sector growth, 142
      • recovery from U.S. tapering shock, 113–115
    • Indonesia
      • bank resolution in, 272–273
      • capital markets, 69, 74, 86, 89, 92, 94
      • debt patterns, 116–118
      • demographic trends and challenges, 181
      • external debt, 118–119
      • financial sector characteristics, 11, 13, 15, 16, 25, 30–31, 272
      • foreign direct investment inflows, 212–213
      • future challenges, 3, 7
      • inflation, 120
      • infrastructure development, 179
      • macroprudential policies, 253
      • nonbank financial sector, 281
      • recovery from U.S. tapering shock, 113–115
      • reforms in response to Asian financial crisis, 125t
      • trade, 211
    • Industrial and Commercial Bank of China, 13
    • Inflation, 120, 134
    • Infrastructure and physical capital
      • benefits of financial sector deepening for development of, 192–194, 198–199
      • bond markets, 93–96, 100, 197–198
      • current state, 179, 179f, 180, 180f
      • demographic change and investment in, 189, 192–194
      • economic growth and, 179, 184–185
      • financial sector policies to support development of, 180–181, 194–198, 199–200
      • financing, 185–186, 196–198
      • future challenges for Asian economies, 4, 7, 177, 185, 223
      • public–private partnerships for development of, 197
      • rationale for bond market development to finance, 61
    • Initial public offerings, 154f, 155, 157–158, 158t
    • Insurance companies, 13–14, 69, 136, 243
    • Interest income, 30, 31f
    • Interest-rate derivatives, 75, 76f
    • Interest rates
      • bank lending and, 136–137, 137f
      • future prospects, 138
      • patterns and trends, 216f
      • signs of regional integration, 215
    • International Association of Insurance Supervisors, 274
    • International finance centers of Singapore and Hong Kong, 7, 18b, 149
      • assets under management, 153f, 156
      • bond markets, 154f, 155, 158–159, 159t
      • effects of capital account liberalization in China, 163–164
      • evolution of, 150–152, 153f
      • financial regulation in, 166–170
      • foreign exchange markets in, 152
      • foreign financial market participation, 164–166, 165f, 168–169
      • future challenges and opportunities, 170–171
      • geographic regions and economic sectors served by, 152–157, 153f
      • government policies and support for, 151–152
      • Initial public offerings, 154f, 155, 157–158, 158t
      • market specialization of, 152
      • offshore financial activity and, 156
      • openness of, 156–157
      • participation in regional and global forums, 167
      • rationale for complementarity relationship between, 149–150, 154–164, 170
      • renminbi business and, 154–155
      • shock propagation model, 160–162, 161b, 163f, 172f
      • significance of, in Asian economies, 149
      • sources of growth, 157–159, 158t, 159t
      • stock market capitalization, 156
    • International investment position, 132–134, 140, 144
    • International Monetary Fund, 232
    • International Organization of Securities Commissions, 274, 280
    • Investment
      • benefits of financial deepening for infrastructure development, 192–194
      • demographic trends and, 182
      • institutional investor assets, 199t
      • Japan’s, in Asia, 242–244, 243f
      • trends in ASEAN countries, 214–215, 215f
    • Investor base
      • bond market, 60, 61, 69, 92–93, 99–100, 136
      • capital market development and, 14, 14f, 35, 63–64
      • diversity, 70f, 99–100
      • for infrastructure development, 196, 198
      • strategies for expanding, 92
      • trends, 69

    J

    • Japan
      • banking sector, cross-border activities of, 244, 245–246b
      • demographic trends and challenges, 4, 178, 181
      • financial sector characteristics, 11, 13, 15, 16, 23, 28, 271, 272
      • financial sector regulation, 280
      • foreign exchange market, 18b
      • future challenges and opportunities, 3
      • government debt, 10, 17
      • influence on Asian capital flows, 8, 241, 242–244
      • outward portfolio investment, 242–243, 243f
      • projected financial sector growth, 142
      • response to global financial crisis, 29

    K

    • Knock-in-knock-out foreign exchange options, 31
    • Korea
      • capital markets, 66–67, 74, 84, 86, 92
      • debt patterns, 118
      • demographic trends and challenges, 4, 178, 181
      • financial sector characteristics, 11, 13, 16, 23, 25, 30
      • foreign-exchange-related
      • macroprudential policy, 256–257b
      • macroprudential policies, 253
      • nonbank financial sector, 281
      • response to Asian financial crisis, 125t
      • response to global financial crisis, 29

    L

    • Labor market
      • demographic trends, 178f, 181–182, 190
      • foreign direct investment flows to Asia, 213
    • Lao P.D.R., 212–213, 237
    • Legal system. See Governance and law
    • Life expectancy, 178
    • Low-income households
      • access to financial services, 3, 26
      • future challenges and opportunities, 3

    M

    • Macroprudential regulation, 108, 279–280
      • countercyclical, 257
      • foreign-exchange-related, in Korea, 256–257b
      • global comparison, 255f
      • to reduce risk from capital flow volatility, 253–258, 259
    • Malaysia
      • banking sector, 214
      • capital markets, 66–67, 69, 74, 86, 89, 92, 93, 94, 95
      • credit growth, 115–116
      • debt patterns, 116
      • demographic trends and challenges, 181
      • external debt, 118–119
      • financial sector characteristics, 11, 13, 16, 25, 28, 144, 272
      • financial sector supervision in, 277
      • foreign direct investment inflows, 212–213
      • macroprudential policies, 280
      • reforms in response to Asian financial crisis, 126t
    • Middle class
      • in ASEAN, 204, 211, 213, 223
      • in future of Asian economies, 3
      • growth trends in Asia, 3
    • Mitsubishi UFJ Financial Group, 13
    • Mizuho Financial Group, 13
    • Mobile banking, 26, 27f, 36
    • Mongolia, 180, 237
    • Mutual funds, 69–71, 71f, 92
    • Myanmar, 180, 212–213

    N

    • New Zealand
      • financial sector characteristics, 13, 23
      • macroprudential policies, 253
    • Nonbank depository institutions, 11–12, 100
    • Nonbank financial institutions. See Shadow banking sector
    • Nonperforming loans, 116f, 118

    O

    • Offshore financial activity, 97–99, 156, 229

    P

    • Pan Asia Bond Index Fund, 63
    • Pension funds, 13–14, 70f, 92, 136, 198, 243–244
    • Philippines
      • banking sector, 214
      • capital markets, 69, 74, 84, 89, 92, 93, 94, 98
      • demographic trends and challenges, 181
      • external debt, 118–119
      • financial sector characteristics, 13, 15, 16, 24, 25, 272, 275
      • foreign direct investment inflows, 212–213
      • infrastructure development, 179, 180
      • response to Asian financial crisis, 126–127t
    • Policy banks, 13, 28, 29
    • Portfolio investment, 214–215, 215f, 237, 238, 239f, 242–243, 243f
    • Private sector
      • corporate bond markets, 25, 60, 61, 63, 71, 74, 74f, 82–91, 84t, 85t, 90f, 91f, 96–97, 99, 101–102f, 283
      • corporate debt, 117–118
      • credit intermediation, 22–26
      • credit to, in ASEAN, 217–218, 218t
      • financing sources, 25, 60
      • foreign ownership restrictions, 213
      • infrastructure investment from, 193
      • public–private partnerships, 197
      • reforms after Asian financial crisis, 108
    • Privatization, 141
    • Public debt
      • financial sector growth and, 136
      • future challenges, 35–36
      • infrastructure development and, 179, 185
      • nonmarket sources of, 17
      • spending as percentage of GDP, 186f
      • trends, 120, 121f
    • Public–private partnerships, 197

    Q

    • Quantitative and qualitative easing program in Japan, 241, 242–244
    • Quantitative easing program, U.S., 6, 61, 107, 110–112, 113, 114f, 124, 215, 235

    R

    • Regional integration
      • banking sector, 213–214, 214f
      • bond markets, 63
      • capital flows and, 252
      • capital market infrastructure, 95–96
      • to enhance infrastructure investment, 194–195, 199
      • financial interconnectedness, 9, 32–33, 33f
      • financial sector growth and, 131
      • future challenges and opportunities, 4–5, 7, 199
      • harmonization of financial standards, 167, 230
      • macroeconomic management in, 230–231
      • rationale for financial risk sharing, 180–181
      • reciprocity agreements in, 230
      • regulatory cooperation in, 275–276
      • risks, 181
      • stock market pricing and, 48, 53
      • strategies for enhancing, 195, 229–232
      • trade openness and, 141, 211–212
      • vulnerability to shock and, 110
      • See also Association of Southeast Asian Nations
    • Regulation, financial
      • Basel III requirements, 267–270, 268t, 269t
      • bond market development and, 69, 100
      • characteristics of Asian economies, 277–278
      • corporate bond market growth and, 283
      • credit intermediation, 28–29
      • current compliance with international standards, 274, 275f, 284–285
      • current shortcomings in, 265, 274, 276t
      • derivatives markets, 284
      • effects on lending rates, 270–271, 271f
      • to foster capital market development, 63
      • future challenges for, 7, 8, 266, 285
      • future of Asian securities markets and, 6, 39
      • global, spillover effects from, 278–279, 286
      • of international finance centers, 166–170
      • macroprudential policy, 279–280
      • measure of, 49b, 52
      • nonbank financial institutions, 92, 285
      • to promote banking integration, 222
      • regional variation, 11
      • response to Asian financial crisis, 108, 265, 266–267
      • securities markets, 280
      • stock pricing and, 39, 44, 48–52, 50f, 51f, 53
      • See also Global regulatory environment; Supervision, financial system
    • Resilience of Asian economies
      • current account balances and, 118–120
      • current state of, 107, 115–122, 124
      • financial sector vulnerabilities, 115–118
      • future challenges and opportunities, 107, 124
      • global financial crisis outcomes, 107–110
      • macroeconomic factors, 120–122
      • reducing risk from capital flow fluctuations, 236, 252–258, 259
      • reforms in response to Asian financial crisis (1997) and, 108–109, 123–124, 125–127t
      • sources of, 109–110, 110f, 113–115
      • U.S. tapering policy and, 107, 110–112, 113, 114f, 124

    S

    • Savings
      • capital market development and, 63
      • demographic trends and, 134–135, 141, 178–179, 182–184, 184f, 186–192, 188t, 191f, 191t
      • future challenges for Asian economies, 4, 7
      • income and, 189
    • Securities markets
      • current characteristics, 12f
      • dematerialization of securities and, 93–94
      • future challenges and opportunities, 6, 39
      • regulation, 6, 39, 49b, 280
    • Shadow banking sector, 9, 14–16, 15f, 30, 92, 118, 139, 266, 280–283, 281f, 285
    • Shock propagation model, 160–162, 161b, 162f, 163f
    • Singapore, 10
      • bank resolution in, 272, 276
      • capital account openness, 226b
      • capital markets, 66–67, 69, 74, 85, 92, 93, 94
      • credit growth, 115–116
      • debt patterns, 116–118
      • demographic trends, 4
      • financial sector characteristics, 11, 23, 25, 230
      • foreign direct investment inflows, 212–213
      • foreign exchange market, 18b
      • macroprudential policies, 253
      • response to global financial crisis, 29
      • See also International finance centers of Singapore and Hong Kong
    • Small and medium-sized enterprises, access to financial services, 3, 9, 25–26
    • South Africa, 15
    • Standard Chartered Bank, 166, 169
    • Stock markets
      • capitalization, 39, 40, 40f, 41t, 141
      • current characteristics, 10, 12f, 16, 18–21, 19f, 39–42
      • determinants of returns, 47–48
      • effects of idiosyncratic factors in pricing, 42–44, 47–48, 53
      • factor model of returns, 46
      • foreign investment, 39, 40–42, 42f, 44, 45–46
      • foreign listings, 42
      • future challenges and opportunities, 6, 19
      • global financial crisis and, 44
      • growth patterns and trends, 16, 17f
      • of Hong Kong and Singapore, 156
      • institutional factors in performance of, 43
      • international comparison of performance, 45, 54–57t
      • international integration, 40–42, 42f, 45–46
      • liquidity, 19, 20f, 40
      • listed companies, 18, 40
      • new capital raised in, 18, 40
      • regulatory effects, 44, 48–52, 50f, 51f, 53
      • speculative bubbles, 42–43
    • Structured financial products, 9, 31
    • Sumitomo Mitsui Financial Group, 13
    • Supervision, financial system
      • in ASEAN, 223, 230, 231
      • characteristics of Asia’s, 267, 277
      • derivatives markets, 75, 97
      • future challenges, 35
      • independence of supervisors, 277
      • in international financial centers, 149, 150, 164–166, 168
      • macroprudential, 279–280
      • post-Asian financial crisis, 108, 125b, 126b, 265, 266
      • strategies for improving, 274–277
    • Surveillance, ASEAN initiatives, 206b, 223, 230

    T

    • Thailand
      • banking sector, 214
      • bank resolution in, 272, 278
      • capital markets, 69, 74, 89, 92, 94, 95
      • credit growth, 115–116
      • debt patterns, 116
      • demographic trends and challenges, 181
      • financial sector characteristics, 11, 13, 16, 272
      • foreign direct investment inflows, 212–213
      • macroprudential policies, 253
      • reforms in response to Asian financial crisis, 127t
    • Trade openness, 135–136, 141
      • among ASEAN countries, 207
      • financial integration and, 211–212
      • opportunities for improving, among ASEAN countries, 207–211
    • Trade patterns
      • among ASEAN countries, 207–211, 210f, 211f
      • exports by category, 211, 211f
    • Transportation infrastructure, 179, 180

    U

    • United Kingdom, 142
    • United States
      • exchange-traded funds, 31–32
      • exit from quantitative easing program, 6, 61, 107, 110–112, 113, 114f, 124, 215, 235, 240–241, 242
      • extraterritorial effects of financial regulations, 69, 283
      • influence on Asian capital flows, 235, 239–241, 242
      • international finance centers of Asia and, 167–168
      • investment in Asia, 238, 240f
      • projected financial sector growth, 142
      • shadow banking sector, 15
      • size of financial sector, 10

    V

    • Vietnam
      • capital markets, 69, 74
      • demographic trends, 143
      • financial sector characteristics, 28–29
      • financial sector regulation, 278
      • foreign direct investment inflows, 212–213
      • projected financial sector growth, 142
    • Volcker Rule, 283

    W

    • Wages, 213
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