Finance

Fintech is the game-changer for financial inclusion in Asia

Fintech is the game-changer for financial inclusion in Asia
Due to innovations in financial technology and changes in the enabling environment, the number of financially excluded adults across Asia and the Pacific has dropped to about 1 billion. Increased access to affordable financial services can be a lever for Asians to smoothen consumption, manage risk and improve their lives through better savings options, access to credit, and cheaper payments or remittances. Read more.
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Trade

Why is trade finance such a big deal for SMEs?

Why is trade finance such a big deal for SMEs?
Small and medium-sized enterprise (SME) exporters have the potential to change the world. They are innovative, they are often young, and they are competitive. Yet globally, they can expect more than half (52%) of their proposals to finance trade transactions to be rejected by banks. Read more.
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Economics

Global economic dynamics and Kazakhstan’s challenges in public financial management

Global economic dynamics and Kazakhstan’s challenges in public financial management
As a highly globally integrated, resource-rich, upper-middle income country, Kazakhstan has been facing significant challenges in the current global environment. Kazakhstan’s major challenges include managing its public finances to preserve fiscal stability and generating broad-based economic growth. Read more.
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Economics

Structural reforms to sustain Asia’s growth

Structural reforms to sustain Asia's growth
Economic growth in both developing and advanced economies has slowed since the global financial crisis. Developing Asia’s growth also moderated after the crisis, to a large extent driven by the slowdown in the People’s Republic of China (PRC). The region’s economy expanded on average 7.6% annually during 2001–2010, but growth slowed to an annual average of 6.5% during 2011–2015. ADB is projecting further deceleration to 5.7% in each 2016 and 2017. Read more.
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Finance

Measuring the systemic risk contribution of international mutual funds

Measuring the systemic risk contribution of international mutual funds
During the global financial crisis of 2007–2009, the importance of the scale and correlation of entities in interconnected financial systems, especially on what have become known as “too big to fail” institutions in the global financial system, was clearly evident and spotlighted. Several proposals have been brought on by regulators in the United States (US), covering insurers, asset management funds, private equity firms, hedge funds, and mutual funds (The Economist 2012). Against this backdrop, it is useful to examine systemic risk of international investment. In this article, we focus on the mutual fund sector, for which net assets under management have totalled almost $30 trillion over the last decade, accounting for more than 50% of global market capitalization (Investment Company Institute 2013). Read more.
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Regional Cooperation, Trade

RCEP – a life raft for trade liberalization in Asia

RCEP - a life raft for trade liberalization in Asia
There seems to be a pushback against trade agreements in the post global financial crisis era. The Trans-Pacific Partnership (TPP) was signed in early 2016, but US presidential candidates have spared no effort criticizing it so near-term ratification is highly uncertain. The WTO Doha Round is in the deep freeze after 14 years of negotiations. Unilateral trade liberalization has virtually come to a standstill. Read more.
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Energy

India: The rising star on the world’s energy horizon

India: The rising star on the world’s energy horizon
Access to energy sources at low prices will continue to drive the world’s political agenda as energy is a component as well as an object of national power. The world’s primary energy consumption from commercial sources of energy has grown from approximately 8,600 million tons oil equivalent (mtoe) to 13,000 mtoe from 1995 to 2015 and is forecasted to grow approximately by the same amount to 17,300 mtoe by 2035. Read more.
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Economics

Impact of a possible growth slowdown of the People’s Republic of China on emerging Asia: A general equilibrium analysis

Impact of a possible growth slowdown of the People’s Republic of China on emerging Asia: a general equilibrium analysis
With its rapid economic growth and integration into the global economy over the last 3 decades, the People’s Republic of China (PRC) has emerged as a major economic power and an important source of growth for the world economy. Now it is the second-largest economy at market exchange rates and the largest exporter in the world. In Asia, the PRC’s role as a growth pole is even more prominent. Over the last 10 years, spurred by strong processing exports and domestic demand, the PRC’s imports from Asia in US dollar terms have increased at an average annual rate of 9%. Strong demand from the PRC also supported prices of commodities exported by Asian and other emerging economies. Read more.
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Governance

E-government as a vehicle to reduce white-collar crimes

E-government as a vehicle to reduce white-collar crimes
The increasing use of the internet in recent years has caught the fancy of consumers and producers, in commodities, services, and leisure activities. The wide prevalence of wireless internet access and the portability of devices such as smartphones and tablets have increased access and diffusion of related services and products as possibly no other technology in history. Read more.
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Finance

Spillover effects of unconventional monetary policy on Asia and the Pacific

Spillover effects of unconventional monetary policy on Asia and the Pacific
On August 2015, the People’s Bank of China devalued the yuan with the aim of appreciating the currency against the US dollar. On October 2015, the European Central Bank signaled the intention to pump more liquidity into the eurozone economy. On October 2015, the Federal Reserve postponed its intention to conduct tapering on its monetary policy. Over the last 24 months, the dollar has been up nearly 10% against a major currency index of its trading partners. Emerging market economies have been facing disappointing growth, more volatile foreign exchange rates, and low inflation due to the slowdown in economic activities and the sharp decline in commodity prices. Moreover, the growth of debt in emerging countries has increased dramatically compared to advanced economies. Since 2009, the average level of private credit as a proportion of gross domestic product (GDP) has increased from around 75% to 125%. These stylized facts highlight deep uncertainties and downside risks in Asia. Measures of regional financial integration, capital market deepening, and emerging market banking systems must be carefully evaluated. Read more.
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