Developing ASEAN5 Bond Markets: What Still Needs to Be Done?
35 Pages Posted: 14 Jun 2011
Date Written: June 2011
This paper examines a range of issues relating to bond markets in the ASEAN5 (Indonesia, Malaysia, Philippines, Singapore and Thailand) - physical infrastructure including trading, clearing and settlement; regulation, supervision and legal underpinnings; and derivatives markets - and finds that the frameworks compare well with other Emerging Markets, following a decade of reform. A number of areas where further enhancements could be made are highlighted. The paper also examines the interrelationship between central bank management of short-term interest rates and domestic currency liquidity, and development of the wider money and bond markets; and suggests some lessons from the recent crisis in developed country financial markets which may be important for the future development of the ASEAN5 markets.
Keywords: Asia, Bond markets, Central banks, Financial crisis, Global Financial Crisis 2008-2009, Indonesia, Liquidity management, Malaysia, Philippines, Singapore, Taxation, Thailand
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