ID :
49210
Thu, 03/05/2009 - 16:52
Auther :
Shortlink :
https://oananews.org//node/49210
The shortlink copeid
CENTRAL BANK GOVERNOR SEES BOOST TO REGIONAL INTEGRATION
KUALA LUMPUR, March 5 (Bernama) -- The current global financial crisis is
expected to accelerate the financial and economic integration of Association of
South-East Asian Nations (Asean) and greater Asia.
Malaysia's Central Bank governor, Dr Zeti Akhtar Aziz, said this should be
viewed positively, not only towards the unwinding of the global imbalances, but
also because this has the potential to contribute towards global growth.
"The banking sector in Asean and the greater Asian region will have an
important role in facilitating this trend.
"Islamic banking, in particular, which is a form of financial intermediation
that is directly linked to trade and investment flows, has significant potential
to facilitate this process," she said at the launch of the PT Bank Muamalat
Indonesia here Thursday.
Zeti said Islamic finance required all financial transactions to be
supported by an underlying economic activity.
"There is now a renewed focus in the global community on generating real
economic activity, generating jobs and generating overall financial stability,"
she said.
She said following the developments that had led to the current global
financial crisis, there was a greater recognition for the need to reduce the
decoupling of the expansion of financial transactions and the growth of the real
economy.
"This is in fact a fundamental requirement in Islamic finance thereby
resulting in a close link between financial and real flows," she said.
Zeti said Asean and greater Asia had the potential to further strengthen
their domestic economies.
"Indeed, in doing so this would contribute towards reducing further the
global imbalances. In addition, being diverse economies, we are able to take
advantage of the complementarities that exist in the region," she said.
This is reflected in the increased intra-regional trade and intra-regional
investment flows. Intra-regional trade as a ratio of total trade of the region
has increased from 30 per cent in 1990 to 40 per cent in 2007.
Intra-regional investment flows now account for 12 percent of the region's
foreign direct investment. With a total population of 575 million, Asean also
has greater potential to increase its economic interface with the larger
economies in greater Asia.
-- BERNAMA
expected to accelerate the financial and economic integration of Association of
South-East Asian Nations (Asean) and greater Asia.
Malaysia's Central Bank governor, Dr Zeti Akhtar Aziz, said this should be
viewed positively, not only towards the unwinding of the global imbalances, but
also because this has the potential to contribute towards global growth.
"The banking sector in Asean and the greater Asian region will have an
important role in facilitating this trend.
"Islamic banking, in particular, which is a form of financial intermediation
that is directly linked to trade and investment flows, has significant potential
to facilitate this process," she said at the launch of the PT Bank Muamalat
Indonesia here Thursday.
Zeti said Islamic finance required all financial transactions to be
supported by an underlying economic activity.
"There is now a renewed focus in the global community on generating real
economic activity, generating jobs and generating overall financial stability,"
she said.
She said following the developments that had led to the current global
financial crisis, there was a greater recognition for the need to reduce the
decoupling of the expansion of financial transactions and the growth of the real
economy.
"This is in fact a fundamental requirement in Islamic finance thereby
resulting in a close link between financial and real flows," she said.
Zeti said Asean and greater Asia had the potential to further strengthen
their domestic economies.
"Indeed, in doing so this would contribute towards reducing further the
global imbalances. In addition, being diverse economies, we are able to take
advantage of the complementarities that exist in the region," she said.
This is reflected in the increased intra-regional trade and intra-regional
investment flows. Intra-regional trade as a ratio of total trade of the region
has increased from 30 per cent in 1990 to 40 per cent in 2007.
Intra-regional investment flows now account for 12 percent of the region's
foreign direct investment. With a total population of 575 million, Asean also
has greater potential to increase its economic interface with the larger
economies in greater Asia.
-- BERNAMA
