Over the decade and a half after the Southeast Asian crisis, emerging markets in Asia have seen a substantial transformation of their financial structures, defined by the markets, institutions and instruments that populate them and the regulatory frameworks that govern them. There has also been some shift in the explicit or implicit macroprudential framework adopted in these countries. Broadly speaking four kinds of tendencies have been observed: (i) persistence with open doors for cross-border flows of financial capital; (ii) domestic deregulation and provision of greater space for new foreign and domestic private interests; (iii) a degree of regulatory forbearance with increasing adoption of Basel type, capital-adequacy based regulation; and (iv) macroprudential regulation of a kind that implies a combination of deflation and reserve accumulation. Put together, these tendencies have not been the best from the point of view of growth that is broad-based and inclusive and of financial stability.

More recently, despite the experience of the global financial crisis which points to the potential dangers associated with some or all of the above tendencies, there has been no change in direction. Part of the reason is fear that significant changes in the regulatory framework in one or a few countries may encourage regulatory arbitrage that drives accumulated legacy capital out of the country with destabilising effects. Unfortunately, globally, despite the experience with the crisis and efforts such as the Dodd-Frank Act in the US, only real advance, if any, has been a stretched out restructuring of the Basel framework.

This also raises the following questions, given the financial evolution of Asian EMEs over the last decade and a half: (i) what would an appropriate structure of financial regulation for these countries; (ii) whether there are strong common elements in the structures they should adopt; and (iii) whether regional cooperation for the shaping and implementation of an appropriate framework may overcome the problems created by the absence of global consensus.

The workshop would

1. map the tendencies with regard to financial evolution in Asian EMEs noted above;
2. assess their consequences for growth and stability;
3. discuss the implications for financial regulation; and
4. examine the need and potential for regional financial and regulatory cooperation.
   

   PROGRAMME

   Friday May 17
   
   9:50 am -10:00am
   Inaugural and Welcome
   Kwon Soonwon, Director of Financial Economy Institute
   
   Session 1: 10:00 am – 11:30 am
   Finance in Asia after the crisis
   C.P. Chandrasekhar (Download Presentation)
   Lim Mah-Hui (Download Presentation)
   Kang-kook Lee (Download Presentation)
   
   Session 2: 11:45 am – 12:30 pm
   Finance in Asia after the crisis
   Hendri Saparini (Download Presentation)
   Chang Kyung-Sup (Download Presentation)

   Session 3: 2:00 pm - 3:15 pm
   Asian financial cooperation
   Lee Doowon (Download Presentation)
   Piti Srisangnam (Download Presentation)
   
   Session 4: 3:30 pm – 5:00 pm
   The Korean experience
   Kim Gi-Juhn
   Moon Myoung-soon
   Kwon Soonwon
   Kim Do-Kyun & Chang Kyung-Sup (Download Presentation)
   
   Saturday May 18
   
   Session 1: 10:00 am – 11:15 am
   Perspectives on finance and regulation I
   Huang Ying (Download Presentation)
   Joseph Lim (Download Presentation)
   
   Session 2: 11:30 am - 12:30 pm
   Perspectives on finance and regulation II
   Sabri Oncu (Download Presentation)
   Jayati Ghosh (Download Presentation)
   
   Session 3: 3:30 pm – 5:00 pm
   Prospects for Financial and Regulatory Cooperation in Asia: Open Session
   

Participants

C.P. Chandrasekhar, Professor, Centre for Economic Studies and Planning, Jawaharlal Nehru University, New Delhi 110 067, India (cpchand@gmail.com)

Chang Kyung-Sup, Professor of Sociology and Director, Political Economy and Social Policy Research Center, Seoul National University, Seoul, South Korea (changks@snu.ac.kr)

Hendri Saparini, Managing Director, ECONIT Advisory Group Jl. Tebet Barat Dalam IV No. 5-7 Jakarta Selatan 12810, Indonesia. (hendrisaparini@yahoo.com)

Huang Ying, Associate Researcher, Institute of World Economic Studies,China Institutes of Contemporary International Relations(CICIR), A-2 Wanshousi, Haidian, Beijing 100081, China (fortstonesg@163.com)

Jayati Ghosh, Professor and Chairperson, Centre for Economic Studies and Planning, Jawaharlal Nehru University, New Delhi 110 067, India (jayatijnu@gmail.com)

Joseph Anthony Lim, Professor, Department of Economics, Ateneo de Manila University, Quezon City, Philippines (josephanthony_lim@yahoo.com)

Kang-Kook Lee, Professor, Graduate School of Economics, Ritsumeikan University. Shiga ken KusatsushiYagura 1 cho-me6-3-303, Japan (kangkooklee@gmail.com)

Kim Do-Kyun, Research Fellow, Seoul National University Asia Center (SNUAC), South Korea

Kim Gi-Juhn, Member, the National Assembly, South Korea

Kwon Soonwon, Professor, Sookmyung Women's University, Division of Business Administration, Seoul / Director, Financial Economy Institute, South Korea (soonwon@sookmyung.ac.kr)

Lee Doowon, Professor, Department of Economics, Yonsei University, South Korea (leedw104@yonsei.ac.kr)

Michael Lim Mah Hui, Regional Adviser on Finance Issues, South Centre, Penang, Malaysia (limmahhui@aim.com)

Moon Myoung-soon, Team Head, Consumer Protection Department, Kookmin Bank, South Korea

Piti Srisangnam, Faculty of Economics, Chulalongkorn University, Phayathai Road, Bangkok 10330, Thailand (piti31@gmail.com)

Sabri Oncu, Head of Research, Centre for Advanced Financial Research and Learning, C-8, 8th Floor, Reserve Bank of India, Bandra-Kurla Complex, Bandra (East), Mumbai – 400051, India (sabri.oncu@gmail.com)

May 8, 2013.