Strengthening Asia's Financial Safety Net

Abstract

The 1997–1998 Asian financial crisis and the 2007–2008 global financial crisis highlighted the need for global and regional financial safety nets to safeguard financial stability and enhance resilience to future crises. Over the past decade, Asian economies have made progress in establishing financing arrangements to strengthen the region's financial safety net. These arrangements have enhanced regional macroeconomic and financial surveillance, strengthened crisis management, and bolstered cooperation for financial stability and resilience. This report examines the evolution and the toolkits of regional financing arrangements and assesses the Asian Development Bank's role in providing crisis response mechanisms through its policy based lending facilities.