Financial System Stability, Regulation, and Financial Inclusion (eBook)

Preface 6
Contents 8
About the Authors 9
Abbreviations 17
Welcoming Remarks 18
Session 1: Financial System Stability and Competition in the Financial Industry 21
Address by Session Chair 21
Financial System Stability and Competition: Do They Complement or Clash? 22
Motivation 22
Evidence 24
TBTF: Are Current Reforms Sufficient? 26
Where Should Competition Policy Head? 28
Conclusion 28
Navigating the Financial Regulator’s Impossible Trinity 29
Comments to Session 1 34
Competition and Stability Are Two Important Policy Objectives 34
Financial Deregulation and Financial System Crisis 35
Regulations Are Evolving 35
Supervision Is also Changing 36
What Is Most Important Is the Self-Discipline of Bank Managers 37
Deposit Guarantee Scheme and Resolution Fund as a Backstop 37
Shadow Banking Sector 37
Conclusion 37
Current Regulatory Environment 38
Strategies for Financial Institutions 39
Our Views on Our Competition 39
Open Floor Discussion 42
References 46
Keynote Speech: Current Situation, Challenges and Future of Regional Finance in Japan 47
Present Situation of Japan’s Regional Finance 47
Challenges for Regional Finance 50
Future of Regional Finance 53
Session 2: Finance to SMEs through Banks, Capital Markets and Other Financial Methods 57
Address by Session Chair 57
Is Finance a Binding Constraint for SME Participation in Trade? 58
Finance to Small and Medium-Sized Enterprises in Japan and Asia 65
Comments to Session 2 71
Open Floor Discussion 80
References 83
Session 3: Financial Inclusion and Financial Education 84
Address by Session Chair 84
Financial Education and Financial Inclusion 85
Developments of Financial Education in Japan 90
Financial Stability and Financial Inclusion 92
Financial Stability and Financial Inclusion (contd) 97
Comments to Session 3 99
Open Floor Discussion 107
References 109
Session 4: Panel Discussion: Finance to Ensure Asia’s Economic Growth 110
Address by Session Chair 110
Unlocking the Small and Medium-Sized Enterprises’ Potential to Promote Financial Inclusion and Susta 111
Presentations by Panelists 116
Asia Will Continue to Be the Growth Center in the Next Few Years 123
Asia Will Continue to Demand Resources to Sustain Its Growth Momentum and Investment Growth Will Remain Robust 125
Financing Asia’s Growth 125
The Middle-Income Trap 126
Strengthening the Financial System to Support Development Beyond the Middle-Income Trap 127
Financial Inclusion/Education 128
Impact of Basel III on Credit Growth of Banks Will Be Significant in Asia at a Time When Credit Is Vital 129
Open Floor Discussion 132
Closing Remarks 135