Strengthening Payment Systems in Asia

The conference on “Strengthening Payment Systems in Asia” was held in Tokyo, Japan on 10 February 2009. It was co-organized with Keio University's Global Center of Excellence and Japan's Financial Services Agency under its Financial Research and Training Center. The conference discussed the evolving payments systems in Asia, marked by a rapid shift from paper-based to electronic payment systems both in the small and large value transactions. At this time of crisis, the conference highlighted the importance of robust, efficient, and secure national payment systems that market participants can rely on to facilitate the timely and uninterrupted exchange of value from one entity to another.

The first session discussed recent innovations in payment systems in four middle income economies in East Asia, namely Malaysia, Thailand, the Philippines and Indonesia. The country papers highlighted the benefits that small- and medium-sized enterprises (SMEs), which constitute at least 99% of registered business enterprises, have enjoyed from such innovations. Despite increased volatility in the financial markets and larger capital flows since the onset of global financial crisis, the national payment systems in these four countries seem to be functioning very well.

The second session focused on recent developments in payments systems in Japan and their corresponding legal, technological, and regulatory issues. Japan appears to have much more advanced and sophisticated payment systems both for small and large value transactions. One major innovation in Japan's payment system is the introduction of the electronically recorded monetary claims that greatly facilitates SMEs access to bank financing.

The last session highlighted areas for regional cooperation particularly in bolstering regional liquidity support mechanisms crucial in preventing the contagion effects of financial disturbances, and in developing efficient and liquid bond markets in Asia to better mobilize Asian savings for investments in Asia.

The conference was attended by Asian policymakers from national financial regulatory agencies, and central banks; and representatives of the academe, government, non-government and private institutions.