ASEAN must move for financial integration

According to Abelardo “Billy” Cortez, IAFEI secretary and executive committee member, the 10-member Association of Southeast Asian Nations (ASEAN) has a population of 622 million people and enjoys a rate of economic growth in excess of advanced economies.

Writing in the latest IAFEI Quarterly, Cortez says the AEC Blueprint calls for a smoothly-functioning regional financial system with more liberalised capital account regimes and inter-linked capital markets. This is easier said than done given the structural inefficiencies and vested interests embedded within the system.

The Blueprint calls for ASEAN members to expand cross-border cooperation agreements among their banking and financial institutions, focusing on common utilities for services such as electronic payments, and processes like fintech-bank payments, and trade finance using blockchain. 

Proponents of ASEAN financial integration by 2025 have named three goals: financial integration, inclusion and stability. Cross-border concerns are capital account liberalisation, payment and settlement systems and capacity building.

Financial integration will be accelerated through increasing reliance on indigenous banks, and erecting a more integrated insurance and capital markets system.

Financial inclusion will be achieved through the delivery of financial products and services to a much wider community that has remained under-serviced, including micro, small and medium business enterprises.

 

 

About the author

SAIBA and IAFEI

 

 

Are you
podcast
potential?

Tell your story on our
podcast

Follow CFO Talks

CFO Talks

Quick links

Address:
The Workspace at The Club
Cnr Pinaster Avenue and 18th Street
The Club Shopping Centre, Second Floor
Pretoria
South Africa

The Workspace
Melrose Arch
44 Melrose Boulevard
Birnam
Johannesburg
South Africa

Tel. 012-643-1800 |
Email. info@cfotalks.com

Scroll to Top