The Internationalization of Financial Services in Asia

No AccessPolicy Research Working Papers25 Jun 2013The Internationalization of Financial Services in AsiaAuthors/Editors: Tom Glaessner, Stijn ClaessensTom Glaessner, Stijn Claessenshttps://doi.org/10.1596/1813-9450-1911SectionsAboutPDF (0.2 MB) ToolsAdd to favoritesDownload CitationsTrack Citations ShareFacebookTwitterLinked In Abstract:April 1998 Asian countries should consider the benefits of opening their financial service sectors more quickly-at the same time that they are liberalizing capital accounts and deregulating domestic financial markets. The internationalization of financial services-eliminating discrimination between the treatment of foreign and domestic providers of financial services and removing barriers to the cross-border provision of financial services-is of global interest, especially in Asia. Most of Asia limits the entry of foreign financial firms much more than otherwise comparable countries do. Empirical evidence for Asia and elsewhere suggests that this slows down institutional development and that, as a result, it costs more to provide financial services. Asian countries could benefit from accelerating the opening of the financial services sector, in conjunction with the further liberalization of capital accounts and domestic deregulation of financial markets. Apart from other benefits, internationalization helps build more robust, efficient financial systems by introducing international practices and standards; by improving the quality, efficiency, and breadth of financial services; and by allowing more stable sources of funds. The ongoing WTO negotiation of financial services under GATS gives countries the opportunity to commit to opening their financial sectors. Safeguards can be built into the process, and the liberalization can be phased in gradually. This paper-a product of the Economic Policy Division, Poverty Reduction and Economic Management Network-is part of a larger effort in the network to study financial reform in developing countries. The paper was written during the summer of 1997, before the East Asia financial crisis and before the conclusion of the WTO negotiations in December 1997. Previous bookNext book FiguresReferencesRecommendedDetailsCited ByChinese Urban Households' Security Market Participation: Does Investment Knowledge and Having a Long-Term Plan Help?Journal of Family and Economic Issues, Vol.36, No.31 July 2015Evolutionary Variation of Service Trade Barriers in Banking: A Case of ASEAN+320 May 2011Operating performance of banks among Asian economies: An international and time series comparisonJournal of Banking & Finance, Vol.27, No.3X-efficiency in Australian banking: An empirical investigationJournal of Banking & Finance, Vol.25, No.3Resolving the Interest Rate Premium Puzzle: Capital Inflows and Bank Intermediation in Emerging EconomiesSSRN Electronic Journal View Published: November 1999 Copyright & Permissions Related RegionsEast Asia & PacificRelated CountriesKorea, Republic ofIndonesiaCzech RepublicSingaporeChinaRelated TopicsMacroeconomics and Economic GrowthPrivate Sector DevelopmentFinance and Financial Sector Development KeywordsBANKBANKINGBANKSCAPITALCAPITAL FLOWSFINANCIAL INSTITUTIONSFINANCIAL INTEGRATIONFINANCIAL MARKETSFINANCIAL REFORMFINANCIAL SERVICESFINANCIAL SYSTEMSFOREIGN BANKSFOREIGN ENTRYGOVERNMENTSINFRASTRUCTUREINSTITUTIONAL DEVELOPMENTINSURANCEINTERESTREGULATORY FRAMEWORKSTRATEGIES PDF DownloadLoading ...