Miaojie Yu, Peking University: This paper analyzes ASEAN banking regulation by applying the supervisory and regulatory framework of the European Union, which has a more advanced integrated financial system. The comparison focuses on four issues---microprudential regulation, macroprudential regulation, resolution capacity and deposit insurance, and financial safety net for liquidity support---and comes up with detailed recommendations for each issue that are innovative and practical. For example, one suggestion is that the ASEAN+3 Macroeconomic Research Office (AMRO) could perform the same functions of the EU Financial Stability Board in coordinating each national supervisory agency, and being a focal point for integrated supervision.

To be specific, this paper adds value to the literature on regional financial integration and regulation in four major dimensions.

  1. It extends the literature by covering developing countries that have less-developed financial markets and legislation systems than the EU. Both EU and ASEAN are usefully compared on the four aspects...

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