Future of Asia’s Finance: How Can it Meet Challenges of Demographic Change and Infrastructure Needs?

By Ding Ding, Waikei R Lam, Shanaka J Peiris

July 16, 2014

Preview Citation

Format: Chicago

Ding Ding, Waikei R Lam, and Shanaka J Peiris. Future of Asia’s Finance: How Can it Meet Challenges of Demographic Change and Infrastructure Needs?, (USA: International Monetary Fund, 2014) accessed November 12, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

There is a role for Asia’s financial sector to play to address the challenges associated with the region’s changing demographics and infrastructure investment needs. Enhancing financial innovation and integration in the region could facilitate intra-regional financial flows and mobilize resources from the aging savers in industrialized Asia to finance infrastructure investment in emerging Asia. Strengthening the financial ties within the region as well as with the global financial markets alongside appropriate prudential frameworks could also help diversify sources of financing and reduce the cost of funding in emerging Asia. Finally, financial deepening could help ease the potential overheating from scaling up infrastructure investment and hence achieve a more balanced growth in the region.

Subject: Aging, Demographic change, Domestic savings, Financial integration, Financial markets, Infrastructure, National accounts, Population and demographics

Keywords: Aging, Asia, Asia and Pacific, Asia EM Asia, Capital and financial flows, Cost of capital, Demographic change, Domestic savings, Financial deepening, Financial integration, Infrastructure, Infrastructure financing, Infrastructure gap, Infrastructure investment, Rate of return, Saving, WP

Publication Details

Pages:

26
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2014/126
Stock No:

WPIEA2014126
ISBN:

9781498321082
ISSN:

1018-5941

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