Annotated Agenda of AFDP 2003 Annual Forum
APEC Finance and Development Program 2003 Annual Forum
on Establishing Stable Financial Systems: Policy and Challenge
October 15, 2003, Shanghai, China
Shanghai International Convention Center
ANNOTATED AGENDA
Session I: Financial System Stability Assessment
A sound financial system is conducive to the macroeconomic and financial stability and economic growth in the APEC region. In this context, macroeconomic policies, domestic corporate governance, implementation of auditing and accounting standards and public debt management will impact on the capital flow, investors' confidence and financial market stability in the region. Therefore, it is necessary for APEC economies to identify the vulnerabilities of financial systems, strengthen risk management (including prudential supervision), corporate governance and auditing and accounting standards. The following issues will be discussed under this session:
--Soundness and vulnerabilities of financial systems
--Implication of domestic and international macroeconomic environment on financial system stability
--Management of financial system vulnerabilities
Session II: Government's Role in Maintaining Financial System Stability
The practices in both developed and emerging market economies have proven that optimal efficiency can not be achieved by solely relying on the market mechanism to adjust automatically, and the government has a role to play with its appropriate regulation and supervision. The APEC economies showed diversities and differences in their governments'roles and modes in financial regulation and supervision. Thus exchanges of views are most valuable on such issues as among others: what kind of supervision model the government should choose? To what extent the government should conduct supervision? How to make central banks to play their full roles to achieve the financial system stability? The following issues will be discussed under this session:
--Model and intensity of government supervision
--Role of the central bank
Session III: Role of the Market in Maintaining Financial System Stability
The role of the market is also very important in maintaining financial system stability. The financial market structure, the depth and width of the market, and the financial innovation in the market would have great influence on financial system stability. Furthermore, the market discipline itself could have much restriction on market participants. Considering the differences of the development stage and the role of the financial market among APEC economies, the discussion under this session could help foster a better understanding with regard to the role of the market in maintaining financial system stability. The issues will be discussed include as follows:
--Market structure
--Financial innovation
--Market discipline
