ASEAN Regional Financial Cooperation Developments in Banking and Finance 9789814377331

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-The Institute of Southeast Asian Studies

The Institute of Southeast Asian Studies was established as an autonomous organization in May 1968. It is a regional research centre for scholars and other specialists concerned with modern Southeast Asia. The Institute's research interest is focused on the many-faceted problems of development and moderniza· tion, and political and social change in Southeast Asia. The Institute is governed by a twenty-four-member Board of Trustees on which are represented the University of Singapore and Nanyang University, appointees from the government, as well as representatives from a broad range of professional and civic organizations and groups. A ten-man Executive Committee oversees day-to-day operations: it is chaired by the Director, the Institute's chief academic and administrative officer.

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ASEAN REGIONAL FINANCIAL CO-OPERATION Developments in Banking and Finance

by

Michael T. Skully

Occasional Paper No. 56 Institute of Southeast Asian Studies

1979

CONTENTS

l.IST OF ·1 ABLES

1:

ASEAN INTERGOVERNMENT REGIONAL CO-OPERATION EFFORTS

2

ASEAN PRIVATE SECTOR REGIONAL CO-OPERATION EFfORTS

11

REGIONAL EFFORTS OF FOREIGN OWNED INSTITUTIONS

33

IV :

REGIONAL EFFORTS OF LOCAL INSTITUTIONS

37

V:

THE ASIAN DOLLAR MARKET'S REGIONAL ROLE

41

VI :

A COMPARISON OF DOMESTIC FINANCIAL DEVELOPMENTS IN THE ASEAN COUNTRIES

48

THE FUTURE OF ASEAN CO-OPERATION IN BANKING AND FINANCE

59

II:

III :

VII :

APPENDIX I:

ll :

MEMORANDUM OF UNDERSTANDING ON ASEAN SWAP ARRANGEMENT

67

INTERNATIONAL AND NON-ASEAN REGIONAL MULTIGOVERNMENT EFFORTS

72

III : THE FIRST ASEAN BANKERS' CONFERENCE : MAJOR WORKSHOP RESOLUTIONS

76

LIST OF TABLES

Table No. 1

ASEAN Organizational Structure 1979

3

2

Organization Structure of ASEAN before February 1976

5

3

The ASEAN Committee on Finance and Banking (COF AB)

6

4

Special Committee of ASEAN Central Banks and Monetary Authorities Meetings

8

5

ASEAN Insurance Commissioners' Meeting

11

6

ASEAN Public-Private Sector Relations

13

7

ASEAN Banking Council's Objectives

16

8

ASEAN Banking Council Committees

17

9

Activities of the Association of ASEAN Bankers' Association

18

10

ASEAN Insurance Council

27

11

Objectives of the ASF.AN Insurance Council

28

12

Objectives of the !\SEAN Federation of Accountants

32

13

ASEAN Federation of Accountants' Standing Committees

33

14

External Debt Outstanding

36

15

ASEAN Bank Branches in other ASEAN Countries

38

16

ASEAN Bank Representative Offices in other ASEAN Countries

39

17

Total Assets of the Asian Dollar Market

42

18

Asian Dollar Bonds, 1978

45

19

Philippines OBU Holders

47

20

Commercial Banks and Bank Offices in ASEAN Countries

49

21

ASEAN Country Money Supplies: Comparison of Currency in Circulation and Demand Deposits, 1977

50

Table No.

22

A Comparison of Money Supply and Financial Assets to GNP

50

23

ASEAN Bank Advances

52

24

Commerc.:ial Banks in /\SEAN Total Assets (31 December 1977)

54

The Largest Local Banks in each ASEAN Country (By total assets in US$ million, 1977)

54

Top Ten ASEAN B