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Local Currency Collateral for Cross-Border Financial Transactions: Policy Recommendations from the Cross-Border Settlement Infrastructure Forum

Local Currency Collateral for Cross-Border Financial Transactions: Policy Recommendations from the Cross-Border Settlement Infrastructure Forum

Paperback

EconomicsInvesting & Finance

ISBN10: 9292697137
ISBN13: 9789292697136
Publisher: Asian Development Bank
Published: Jan 30 2023
Pages: 84
Weight: 0.62
Height: 0.23 Width: 8.50 Depth: 11.00
Language: English
This report looks at how the use of local currency-denominated bonds for cross-border collateral transactions can be promoted in ASEAN+3 to develop regional bond markets.

Active use of local currency-denominated bonds for cross-border collateral transactions can help by mitigating risks, reducing the credit costs of financial institutions, and expanding market liquidity. The report identifies the challenges faced by regional collateral markets and proposes seven policy recommendations for promoting the cross-border use of local currency bonds as collateral in the Association of Southeast Asian Nations plus the People's Republic of China, Japan, and the Republic of Koreaknown collectively as ASEAN+3.

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Investing & Finance