Conference on Global Financial Crisis: Financial Sector Reform and Regulation
Agenda

Registration

Welcome Remarks - Masahiro Kawai, Dean, Asian Development Bank Institute

Overview of the Conference - David Mayes, Professor, University of Auckland, New Zealand

Session I: Regional Financial Monitoring & Coordination
This session will focus on the potential for developing regional monitoring and cooperation with regard to the financial sector. This would tie in with the possible development of an “Asian Financial Stability Dialogue” (ASFD) regional forum for policy makers discussed in the earlier conference on the subject of structural and institutional economic policy issues, as well as issues of coordinating with the new global Financial Stability Board. Issues include monitoring of capital flows and investor activity; and harmonization of regulations and financial-related taxes with an eye to promoting more stable and transparent capital flow and increasing the attractiveness of regional financial markets to investors inside and outside the region.

Session Chair: Naoyuki Yoshino, Professor, Keio University, Japan

Paper 1: The Financial Crisis—A Wake-up Call for Strengthening Regional Monitoring of Financial Markets & Regional Coordination of Financial Sector Policies
Presenter: Adalbert Winkler, Professor, Frankfurt School of Finance & Management

Paper 2: Regional Monitoring of Capital Flows & Coordination of Financial Regulation: Stakes & Options for Asia
Presenter: Michael Plummer, Professor, SAIS-Bologna

Discussant 1: Ali El Agraa, Professor, University of Fukuoka

Discussant 2: Pak Wing Fong, Research Manager, Hong Kong Monetary Authority

Open Discussion

Coffee Break

Session II: Promotion of Asian Bond & Money Markets
This session will focus on ways to promote the deepening and integration of Asian bond and money markets. This includes: reviews of the Asian Bond Market Initiative (ABMI) and Asian Bond Fund (ABF) and recommendations for further progress; analysis of imperfections in the development of local bond markets that lead to anomalies in yield curves, etc; and the need to develop regional rating agencies.

Session Chair: Noritaka Akamatsu, Senior Adviser, Asian Development Bank

Paper 3: Developing Asian Local Currency Bond Markets: Why & How?
Presenter: Mark Spiegel, Senior Economist, Federal Reserve Bank of San Francisco, USA

Paper 4: Foreign Bond Markets & Financial Market Development: International Perspectives
Presenter: Jonathan Batten, Professor, Hong Kong University of Science & Technology

Discussant 1: Yusuke Kawamura, Professor, Nagasaki University

Discussant 2: Kenji Iwata, Professor, Kyushu University

Open Discussion

Photo Session & Lunch Break

Session III: Liberalization and/or Regulation of Capital Flows
This session will focus on issues related to the liberalization and/or regulation of capital flows. Capital flows bring potential benefits in terms of greater funding of domestic investment, but involve risks as well, due to their volatile nature and currency risk. Proper sequencing of capital flow liberalization should help to reduce some of the risks, while there may be scope to increase controls on short-term capital flows.

Session Chair: David Mayes, Professor, University of Auckland

Paper 5: Liberalization and Regulation of Capital Flows: Lessons for Emerging Market Economies
Presenter: Rakesh Mohan, Distinguished Consulting Professor, Stanford Center for International Development (SCID)

Discussant: Eric Ramstetter, Professor, ICSEAD Kitakyushu

Open Discussion

Coffee Break

Session IV: State Intervention in Crisis Resolution in the Financial Sector
This session will focus on the role of state intervention to resolve crises in the financial sector. How should the state evaluate systemic risk, deal with insolvent institutions, and inject capital if needed? How should it manage nationalized institutions? What other kinds of interventions are desirable?

Session Chair: Shinobu Nakagawa, Head of Research Unit, International Department, Bank of Japan

Paper 6: State Intervention in Crisis Resolution in the Financial Sector:
Case Study of the Republic of Korea

Presenter: Yoon Je Cho, Professor, Sogang University

Paper 7: The Role of the State in Managing and Foretelling Systemic Financial Crises: Some Issues and Perspectives
Presenter: Charles Adams, Professor, Lee Kwan Yew Institute of Public Policy, Singapore

Discussant 1: Yunjong Wang, Senior Vice President, SK Res. Institute

Discussant 2: Zhang Jingchun, International Department, CBRC, PRC

Open Discussion

Cocktail Dinner

Session V: Regulatory Regimes and Cooperation
This session will focus on issues related to regulatory regimes, structure and cooperation. Recent experience has highlighted the shortcomings of fragmented regulatory agencies and a firm-level approach to regulation, not least because of the increased difficulty this poses for international cooperation. The potential for implementing a macroprudential framework to manage systemic risk, unifying regulation at the national level and promoting regional coordination needs to be examined. On the positive side, Asian countries largely escaped exposure to various kinds of toxic financial instruments, and the contribution of the regulatory framework to this needs to be understood.

Session Chair: TBD

Paper 8: A Comprehensive Strategy for Containing Systemic Risk

Presenters:
Masahiro Kawai, Dean, Asian Development Bank Institute
Michael Pomerleano, Visiting Fellow, Asian Development Bank Institute

Paper 9: Prudential Discipline for Financial Firms: Micro, Macro and Market Regimes
Presenter: Larry Wall, Senior Economist, Federal Reserve Bank of Atlanta, USA

Paper 10: Bank Supervision and Bank Performance: The Great China Area in Financial Turmoil
Presenter: HSU Chen-Min, Professor, National Taiwan University

Discussant 1: Akiko Terada-Hagiwara, Economist, Asian Development Bank

Discussant 2: Krirk Vanikkul, Assistant Governor, Bank of Thailand

Discussant 3: Mario Lamberte, Director of Research, Asian Development Bank Institute

Open Discussion

Coffee Break

Session VI: Regulation of Innovative Financial Products & Specific Investor Groups
This session will focus on the need for and implications of regulation of innovative financial products such as derivatives, and of investor groups such as hedge funds that heretofore have been lightly regulated and/or highly leveraged. What regulations and/or subsidies are needed in the area of mortgage-backed securities? A related area is restrictions on short-selling.

Session Chair: TBD

Paper 11: Need for Regulation of Innovative Financial Products & Specific Investor Groups
Presenter: Mariko Fujii, Professor, Tokyo University

Discussant: Kim Yong Duk, Professor, Korea University Business School

Open Discussion

Lunch Break

Session VII: Ways to Reduce Pro-Cyclicality of Regulation
This session will focus on ways to reduce the pro-cyclicality of financial regulation in order to reduce systemic risk arising from self-feeding “balance sheet” recessions. For example, to what extent should mark-to-market rules be eased, and how should bank capital ratios be adjusted?

Session Chair: Yuzo Honda, Professor, Osaka University

Paper 12: Dynamic Provisioning as Countercyclical Regulation: An Assessment of Experiences
Presenter: Alicia Garcia-Herrero, Senior Economist, BBVA

Paper 13: Policies to Mitigate Procyclicality
Presenter: Jochen Andritzky, Senior Economist, International Monetary Fund

Discussant 1: Frank Packer, Senior Economist, BIS

Discussant 2: Noritaka Akamatsu, Senior Adviser, Asian Development Bank

Open Discussion

Coffee Break

Session VIII: Wrap Up Session on First Two Days

Wrap Up Session for the First Two Days of the Conference
Moderator: Masahiro Kawai, Dean, Asian Development Bank Institute

Panelists:
David Mayes – Summary of key issues to be discussed
Yoon Je Cho
Krirk Vanikkul
Noritaka Akamatsu
Zhang Jingchun
Adlbert Winkler
Mark Spiegel

Session IX: Credit Ratings, Credit Rating Agencies, and Their Development in Asia
This session will deal with the following issues: financial crisis and the regulation of rating agencies; and the development of regional rating agencies in Asia.

Session Chair: John West, Senior Consultant, Asian Development Bank Institute

Financial Crisis & the Regulation of Rating Agencies
Presenter: Doo Yong Yang, Research Fellow, Asian Development Bank Institute

Discussant 1: Santiago Dumlao Jr., Secretary General, Association of Credit Rating Agencies in Asia

Discussant 2: Chaiyuth Sudthithanakorn, Director, Bureau of International Economic Policy, Fiscal Policy Office, Ministry of Finance, Thailand

Open Discussion

Coffee Break

Development of Regional Rating Agencies in Asia
Presenter: Li-Gang Liu, Chief Economist for China, BBVA, Hong Kong

Discussant 1: Shingo Muraoka, General Manager, Japan Credit Ratings Agency

Open Discussion

Lunch Break

Session X: Impacts of the Global Financial Crisis on the Banking System in Asia
This session is a roundtable discussion of the impacts of global financial crisis on the banking system in Asia, including sharing of country experiences on banking sector reforms.

Session Chair: Worapot Manupipatpong, Director for CBT, Asian Development Bank Institute

Roundtable on the Impacts of the Global Financial Crisis on the Banking System in Asia
Michael Pomerleano, Visiting Fellow, Asian Development Bank Institute
Anthony Sorrenti, Executive Director, International Bankers Association
Representative from the National Bank of Cambodia (TBC)
Ming Hua Gong, Deputy Director General, China Banking Regulatory Commission
Teguh Supangkat (TBC), Executive Researcher, Directorate of Banking Research & Regulation, Bank of Indonesia
Nishanth Gopinath, Assistant General Manager, Monetary Policy Department, Reserve Bank of India
Hidehiko Sogano (TBC), Associate Director General, Bank of Japan
K. Komalavalli K R Gopal (TBC), Deputy Director, Banking Supervision, Bank Negara Malaysia
Nora Dizon, Acting Manager, International Operations Department, Bangko Sentral ng Pilipinas
Naridas Sreshthaputra, Assistant Vice President, Deposit Protection Agency of Thailand

Open Discussion

Concluding Remarks