Financial Integration and China’s Growth Surge

Many Latin American economies have experienced significant reductions in growth recently, as a result of the end of the commodity super-cycle and the rebalancing of China’s growth, and a number of global banks have been leaving the region. AlthoughLatin American countries were generally less affected by the global financial crisis (GFC) than other regions, the region continues also to suffer from the protracted sluggish growth in advanced economies. In addition, there has since 2008 been a withdrawal of global banks from the region, thus potentially worsening access to credit or reducing competition in the financial sector. More broadly, the GFC demonstrated that extreme economic volatility can originate from outside the region, rather than internally, as was the experience of the 1980s and 1990s...

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Understanding China's Growth

10.1057/9780230591202 ◽

2007 ◽

Cited By ~ 5

Author(s):

Chi Lo

Keyword(s):

China’S Growth

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Financial integration, trade, and productivity

10.33540/72 ◽

2020 ◽

Author(s):

◽

An Thi Thuy Duong

Keyword(s):

Financial Integration

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Vietnam and Threshold Conditions in the Process of Global Financial Integration

Journal of Economic Development ◽

10.24311/jed/2015.22.4.03 ◽

2015 ◽

Vol 22 (4) ◽

pp. 02-25

Author(s):

NGUYEN THI NGOC TRANG ◽

PHAM THI DIEM KIEU

Keyword(s):

Financial Integration ◽

Threshold Conditions

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Understanding China’s Growth: Past, Present, and Future

CFA Digest ◽

10.2469/dig.v43.n2.37 ◽

2013 ◽

Vol 43 (2) ◽

pp. 48-50

Author(s):

Ahmed Sule

Keyword(s):

China’S Growth

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Impacts of Financial Integration in the Asia Economic Community on Competitiveness of the Commercial Banks in Vietnam

VNU Journal of Science Economics and Business ◽

10.25073/2588-1108/vnueab.4193 ◽

2018 ◽

Vol 34 (4) ◽

Author(s):

Nguyen Cam Nhung

Keyword(s):

Financial Services ◽

Commercial Banks ◽

Financial Integration ◽

International Standards ◽

Capital Adequacy ◽

Viet Nam ◽

Economic Community ◽

Industrial Policies ◽

Capital Adequacy Ratio ◽

Internet Economy

This paper assesses the impacts of financial integration in the Asia Economic Community (AEC) on the capacity of finance and provision of financial services of Vietnamese commercial banks. In recent years, Vietnamese commercial banks have achieved some successes as reflected in the growth indicators of operation scales, charter capital and total assets. However, under the pressure of integration, the capital adequacy ratio (CAR) fell slightly in 2016 resulting from the applying of the CAR calculation method to commercial banks in accordance with the new regulations towards step by step approaching international standards. Compared to other countries in the AEC, the capacity of finance and provision of financial services of the Vietnamese commercial banks remains low. As a result, it is necessary to carry out synchronous and drastic measures in the coming time to enhance the competitiveness of the Vietnamese commercial banks. Keywords Competitiveness, financial integration, AEC, commercial bank, Vietnam References [1] UNCTAD, World Investment Report 2018: Investment and New Industrial Policies, June 2018.[2] Cục Đầu tư nước ngoài, “Tình hình thu hút Đầu tư nước ngoài 8 tháng năm 2018”, 2018, http://fia.mpi.gov.vn/tinbai/6045/Tinh-hinh-thu-hut-Dau-tu-nuoc-ngoai-8-thang-nam-2018.[3] Google and Temasek, “e-Conomy SEA Spotlight 2017: Unprecedented growth for Southeast Asia’s $50B internet economy, 2017”, 2017.[4] Tô Thị Thanh Trúc, “Khu vực tài chính Việt Nam trong bối cảnh hội nhập tài chính ASEAN”, Tạp chí Phát triển Khoa học và Công nghệ, 19 (2016) Q1, 2016.[5] Phạm Xuân Hoan, Nguyễn Cẩm Nhung, Nguyễn Bích Thủy, “Ngân hàng TMCP Ngoại thương Việt Nam: Chủ động đón AEC”, Tạp chí Kinh tế và Dự báo, Số 2 tháng 1/2016.[6] Phạm Xuân Hoan, Nguyễn Cẩm Nhung, Nguyễn Bích Thủy, “Khả năng thích ứng của các ngân hàng thương mại Việt Nam khi tham gia hội nhập AEC”, Tạp chí Tài chính, Kỳ 1 tháng 12/2015 (622).[7] Trần Thị Vân Anh, “Ngân hàng Việt Nam trong tiến trình gia nhập Cộng đồng Kinh tế ASEAN”, Tạp chí Khoa học Xã hội Việt Nam, 4 (2016) 101.[8] Nguyễn Thị Diễm Hiền, “Một số vấn đề về ngân hàng thương mại khi Việt Nam gia nhập Cộng đồng Kinh tế Asean”, Tạp chí Phát triển Khoa học và Công nghệ, 19 (2016) Q1, 2016.[9] Blattner N., “Competitiveness of Banks”, Journal of Financial Economics, N.21 (1992).[10] PwC Growth Markets Centre, The Future of ASEAN - Time to Act Financial Services, 2018.

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Capital Flows to Developing Countries: Blessing or Curse? (Distinguished Lecture)

The Pakistan Development Review ◽

10.30541/v37i4ipp.125-151 ◽

1998 ◽

Vol 37 (4I) ◽

pp. 125-151 ◽

Cited By ~ 1

Author(s):

Mohsin S. Khan

Keyword(s):

Developing Countries ◽

Capital Flows ◽

Financial Integration ◽

Foreign Capital ◽

Foreign Debt ◽

Capital Inflows ◽

Private Capital ◽

Policy Responses ◽

Private Capital Flows ◽

Significant Phenomenon

The surge of private capital flows to developing countries that occurred in the 1990s has been the most significant phenomenon of the decade for these countries. By the middle of the decade many developing countries in Asia and Latin America were awash with private foreign capital. In contrast to earlier periods when the scarcity of foreign capital dominated economic policy-making in these countries, the issue now for governments was how to manage the largescale capital inflows to generate higher rates ofinvestrnent and growth. While a number of developing countries were able to benefit substantially from the private foreign financing that globalisation made available to them, it also became apparent that capital inflows were not a complete blessing and could even turn out to be a curse. Indeed, in some countries capital inflows led to rapid monetary expansion, inflationary pressures, real exchange rate appreciation, fmancial sector difficulties, widening current account deficits, and a rapid build-up of foreign debt. In addition, as the experience of Mexico in 1994 and the Asian crisis of 1997-98 demonstrated, financial integration and globalisation can cut both ways. Private capital flows are volatile and eventually there can be a large reversal of capital because of changes in expected asset returns, investor herding behaviour, and contagion effects. Such reversals can lead to recessions and serious problems for financial systems. This paper examines the characteristics, causes and consequences of capital flows to developing countries in the 1990s. It also highlights the appropriate policy responses for governments facing such inflows, specifically to prevent overheating of the economy, and to limit the vulnerability to reversals of capital flows.

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