Asia’s Approach to Improve Financial Regulation

Abstract

The global financial crisis, beginning with the collapse of Lehman Brothers, resulted in fundamental changes in the structure of international forums for the discussion of financial regulatory and supervisory reforms. The most important forums that have emerged from the crisis are the G20 and the Financial Stability Board (FSB). Asian countries occupy an important weight in these forums; so the question is, how can Japan (and other Asian countries) take the best advantage of a larger Asian presence in the G20 and FSB to play a leading role in financial regulatory and supervisory reforms. The divergence among Asian countries poses a challenge in the formation of a single voice for Asia. However, this diversity also means that Asia can lead discussions in international forums to well-balanced conclusions. Regional dialogues within Asia should be enhanced to bring Asia’s voices together as one. Japan is actively taking part in various multilateral and bilateral dialogues and forums from this perspective, and will continue to do so.