Monetary Tightening and Financial Stability Implications in Asia

High-Level Seminar and Peer-Learning Event

Hosted by the National Bank of Cambodia

Siem Reap, Cambodia, September 18-19, 2023

This two-day event includes a high-level seminar focusing on monetary tightening and financial sector stability implications in Asia bringing together central bank deputy governors from the region; on the second day, a peer-learning event for government officials from the regional will discuss how Asia and the Pacific is vulnerable to the effects of monetary tightening in advanced countries and to geopolitical risks. The events are hosted by the National Bank of Cambodia and are by invitation only.

Group photo of the participant in the 16th SEACEN-BIS High-Level Seminar, Hosted by the National Bank of Cambodia in Partnership with IMF-Singapore training Institute, September 18, 2023, Cambodia

 

 

Monday, September 18, 2023

16th SEACEN-BIS High-Level Seminar: Monetary Tightening and Financial Stability Implications in Asia

(in partnership with IMF Singapore Regional Training Institute)

Venue: Conference Hall: Phokeethra Ballroom, Sofitel Angkor Phokeethra

 

09:00 – 09:20

Welcome Remarks

  • Governor Chea Serey, National Bank of Cambodia
  • Mangal Goswami, Executive Director, SEACEN Centre
  • Tao Zhang, Chief Representative for Asia-Pacific, BIS

09:20 – 09:40

Keynote remarks:

Monetary tightening and its implications for financial stability in Asia

  • Bo Li, Deputy Managing Director, IMF (virtual)

09:40 – 09:50

Group photo

 

09:50 – 10:00

Coffee Break

 

10:00 – 11:30

Session 1: Lessons learned from recent US and European banking stress

Lead speaker: Viral Acharya, NYU Stern (virtual)

Moderator: Ilhyock Shim, Head of Economics and Financial Markets for Asia- Pacific, Monetary and Economic Department, BIS

Panel speakers

  • Kenneth Hui, Executive Director, HKMA
  • Yvette Fernando, Senior Deputy Governor, Central Bank of Sri Lanka (virtual)

11:30 – 12:00

Coffee Break

 

12:00 – 13:15

Session 2: Geopolitical fragmentation and financial sector stability risks

Moderator: Roger Nord, Deputy Director, Institute for Capacity Development, IMF

Speaker 1: Cheng Li, Hong Kong University, Centre on Governance of China and the World

Speaker 2: Mahvash Qureshi, Division Chief, IMF

 

13:15 – 14:30

Lunch

 

14:30 – 16:00

Session 3: Monetary and fiscal policy: safeguarding stability and trust

Lead speaker: Claudio Borio, Head of Monetary and Economic Department, BIS (virtual)

Moderator: Tao Zhang, Chief Representative for Asia-Pacific, BIS

Panel speakers

  • Marzunisham Omar, Deputy Governor, Bank Negara Malaysia

16:00 – 16:30

Coffee Break

 

16:30 – 17:30

Session 4: Financial sector development and stability issues in Asia

Speaker 1: Alfred Schipke, Director, IMF Singapore Training Institute

Guest speaker

  • M.D. Patra, Deputy Governor, Reserve Bank of India

Speaker 2: Thomas Helbling, Deputy Director, Asia and Pacific Department, IMF

 

17:30 – 17:40  

Closing Remarks

 

Tuesday, September 19, 2023

Peer-Learning Event: Safeguarding financial stability amid increased interest rates and geopolitical risks

Asia and the Pacific is vulnerable to the effects of monetary tightening in advanced countries and to geopolitical risks. Elevated real interest rates are likely to increase the share of nonperforming loans and thus undermine financial sector stability with adverse macroeconomic and social implications. Geopolitical risks and “de-risking” relocate capital flows with difficult-to-predict consequences for individual countries. This seminar will provide insights into how these events are perceived in the region and provide an overview of selected transmission channels. Finally, the regional seminar will introduce an analytical framework to conduct financial sector stress tests and share country-specific experiences.

 

9:00 – 9:15 

Opening Remarks

Roger Nord, Deputy Director, Institute for Capacity Development, IMF

Tao Zhang, Chief Representative for Asia-Pacific, Bank for International Settlements

Sum Sannisith, Deputy Governor, Bank of Cambodia

 

9:15 – 10:45

Session 1: Financial stability challenges in Asia

Financial sector development and stability issues in Asia
Thomas Helbling, Deputy Director, Asia and Pacific Department, IMF

Financial sector issues in Asia
Kevin Cheng, Group Head, ASEAN +3 Macroeconomic Research Office (AMRO)

Financial stability issues in Singapore: Macro-prudential policies in the housing market
Sherwin Lau, Senior Economist, Macroprudential Surveillance Department, Monetary Authority of Singapore

Discussion

Moderator: Alfred Schipke, Director, IMF – Singapore Regional Training Institute (STI)

 

10:45 – 11:00

Coffee Break

 

11:00 – 12:30

Session 2: Geopolitical fragmentation and capital flows

Geopolitics and financial fragmentation: implications for macro-financial stability

  • Cheng Li, Hong Kong University, Centre on Governance of China and the World
  • Mahvash Qureshi, Division Chief, Monetary and Capital Markets Department, IMF

Discussion

Moderator: Ales Bulir, Deputy Director, IMF – Singapore Regional Training Institute (STI)

 
12:30 – 14:00

Lunch

 

14:00 – 16:00 

Session 3: Hands-on workshop

Financial stability assessment: Interpreting the Data

  • Srichander Ramaswamy, Director, Financial Stability, Supervison & Payment, South-East Asian Central Banks (SEACEN) Research and Training Centre

Quantifying market and interest rate risk for Asia’s financial system

  • Ehsan Ebrahimy, Economist, ICD, IMF
 

16:00 – 16:15

Coffee Break

 

16:15 – 17:45

Session 4: Hands-on workshop — Continued

Further discussion about interest rate risks

  • Ales Bulir, Deputy Director, STI
  • Yoke Wang Tok, Senior Economist, STI
 

17:45 – 18:00

Closing Remarks

Mangal Goswami, Executive Director, The SEACEN Centre