OECD-ADBI Roundtable on Capital Market and Financial Reform in Asia | Asian Development Bank Institute - ADBI | 25 February 2019 | ADBI( Kasumigaseki Building), Japan, 〒100-0011 Tokyo, Chiyoda, Uchisaiwaicho, 1 Chome, 第一ホテル東京フィットネス＆アクアゾーン 1

BACKGROUND
The fast-changing global environment, framed by interest rate hikes by the United States Federal Reserve, the People’s Republic of China’s economic slowdown, geo-political uncertainty, technological disruption, and aging populations, could cause capital flights from Asia and other financial threats to the region. Asian policymakers continue their efforts to mitigate the destabilizing effects of policy changes emanating from the US, in particular, including the widening interest rate gap between Asia and the US. As a result of these disruptions, Asia is currently experiencing a short-term inflow of capital rather than an outflow.

New and emerging digital technologies such as distributed ledger technology, cloud computing, and artificial intelligence are meanwhile offering faster, more convenient, and cost-effective financial services. On the one hand, new financial products and business models are targeting previously excluded market segments like financially vulnerable groups in developing countries while offering higher returns to institutional investors. At the same time, technologically-driven financial innovation may negatively impact the financial market in the longer term. Historically, some market innovations changed the nature of competition and brought unintended consequences.

In addition, those Asian economies with rapidly aging populations face growing social welfare pressures, difficulty catching up with technological advancement, and financial security and longevity risk. All these factors pose challenges to Asia’s policymakers in designing timely and effective monetary and fiscal policy frameworks to maintain economic growth and stability.

The Roundtable on Capital Market and Financial Reform in Asia, established by ADBI and OECD in 1999 as a response to the Asian financial crisis, is an annual forum for discussion among capital and financial market regulators, policymakers, experts, practitioners, scholars, and international organizations on issues related to capital market and financial reform in Asia. This year’s roundtable will discuss pressing issues in capital flows and capital market development in Asia, financial technology (FinTech) developments and regulatory responses, and financing for responsible, viable, and lifecycle infrastructure investments.