Post on 03-Jun-2020
THE APEC EXPERIENCE IN FINANCIAL
INTEGRATION
AND
LINKS TO THE PACIFIC ALLIANCE
PACIFIC ALLIANCE
CAPITAL MARKETS SEMINAR
IFC- LIMA 23- 24 JULY 2018
JULIUS CAESAR PARREÑAS, PH.D.
COORDINATOR, ASIA-PACIFIC FINANCIAL FORUM
SENIOR ADVISOR, MIZUHO BANK, LTD.
THE APEC FINANCE MINISTERS’ PROCESS FMP
APEC Finance and
Development Institute
Disaster Risk Finance
Solutions Working
Group
APEC PPP Experts
Advisory Panel
Asia-Pacific Infrastructure
Partnership (APIP)
Asia-Pacific Financial
Forum (APFF)
Asia-Pacific Forum on Financial Inclusion
APEC Financial
Institutions Dealing with
SMEs
Financial Regulators
Training Initiative
Managed by ABAC
21 APEC Finance Ministries Advisory Functions: ADB, IMF, OECD, WBG, ABAC
Finance Ministers Heads of Delegation of International
Organizations and ABAC
Deputy Finance Ministers/Deputy CB Governors Representatives of International Organizations
and ABAC
Senior Finance Officials Representatives of International
Organizations and ABAC
FMP Policy Initiatives
THE ASIA-PACIFIC FINANCIAL FORUM - STRUCTURE APEC Finance Ministers Process (FMP)
APEC Business Advisory Council (ABAC)
Asia-Pacific
Financial Forum
(APFF)
Financial Infrastructure Development
Network
Insurance / Retirement
Income
Capital Markets
Financial Market
Infrastructure
Trade / Supply Chain Finance
Asia Region Funds Passport
Classic repo markets
Long-Term Investment/Islamic
finance
Innovative Health Financing
APFF Work Streams
Microinsurance
Disaster Risk Financing
Insolvency
Accounts
Receivables Finance
Credit Information
Secured Transactions
Regulation and Accounting
Retirement Income
Accounts/Tax/ Investor ID / Transparency
Repo/Securities Lending
Derivatives
Data management/ Technology
Post-Trade Ecosystem
Fund Services
Data Ecosystem
Central banks
Securities, banking, insurance regulators
International regulatory organizations
Securities industry
Banking (general, trade finance, secured lending, factoring)
Insurance and Pensions
Asset management
Business and consumer credit information
Chambers of commerce
THE ASIA-PACIFIC FINANCIAL FORUM - NETWORK
Firms
Investment / commercial banks
Insurers and pension funds
Non-bank lenders
Asset managers
Law, accounting, consultancy firms
Corporates
Credit rating agencies
Credit bureaus
International / domestic industry
associations
Government agencies
Finance ministries
Justice ministries
Trade ministries
Development assistance agencies
Foreign affairs ministries
Regulatory bodies
International organizations
ADB
BIS
IMF
OECD
World Bank/IFC
UNCITRAL
Academic / research
institutions
Over 400 individual experts Over 200 organizations
THE ASIA-PACIFIC FINANCIAL FORUM - LEADERSHIP
CAPITAL MARKETS
Classic Repo
• Sherpa: Mark Austen, ASIFMA
Asia Region Funds Passport
• Co-Sherpas: Amy Ang, EY * Armin Choksey, PwC * Andrew Clements, KWM
FINANCIAL MARKET INFRASTRUCTURE Post-Trade Ecosystem • Sherpa: TBC
Accounts/Tax/Investor ID/Transparency • Sherpa: TBC, ASEAN+3 Bond Market Forum
Repo/Lending • Sherpa: TBC, ASIFMA
Derivatives • Sherpa: Rishi Kapoor, ISDA
Fund Services • Sherpa: TBC, Asia Fund Standardization Forum
FMI Fintech • Sherpa: Catherine Simmons, Citi *
• Core Group: * Suu Wei Ho, PayPal * Matthew Gamser, IFC/WBG * Ivan
Mortimer-Schutz, IFC/WBG * Boon-Hiong Chan, Deutsche Bank * Quynh Do
Nuh, Visa * Peter Lovelock, TRPC * Laura Winwood, TRPC
TRADE AND SUPPLY CHAIN FINANCE • Sherpa: Boon-Hiong Chan, Deutsche Bank
INSURANCE AND RETIREMENT INCOME
Overall Sherpa: Makoto Okubo, Nippon Life
• Vice Sherpa: Paul Lynch, Prudential
Regulation and Accounting
• Sherpa: Makoto Okubo, Nippon Life
Long-Term Investment
• Sherpa: Brian Murray, AIA
Retirement Income
• Co-Sherpas: Vanessa Wang, Amundi * Josef Pilger, EY* Ka Shi Lau, BCT Group
Disaster Risk Financing and Insurance
• Sherpa: Masaaki Nagamura, Tokio Marine
Microinsurance
• Co-Sherpas: Antonis Malagardis /Dante Portula, GIZ
FINANCIAL INFRASTRUCTURE DEVELOPMENT NETWORK
Credit Information
• Sherpas: Michael Turner/Patrick Walker, PERC * Jinchang Lai, IFC/WBG
Secured Transactions
• Sherpas: Chris Wohlert, Wells Fargo * Jinchang Lai, IFC/WBG
Insolvency
• Sherpas: Shinjiro Takagi, Jinchang Lai, IFC/WBG
Accounts Receivables Finance
• Sherpas: Boon-Hiong Chan, Deutsche Bank * Jinchang Lai, IFC/WBG
Valuation
• Sherpas: Nicholas Brooke, IVSC * James Kojima, IVSC
ASIA-PACIFIC FINANCIAL FORUM (APFF) Chair: Kobsak Duangdee, ABAC Thailand / Thai Bankers’ Association
Co-Chair: Nobuhide Hayashi, ABAC Japan / Mizuho Bank, Ltd.
Coordinator: J.C. Parrenas, Mizuho Bank, Ltd.
FIN
AN
CIA
L IN
TEG
RA
TIO
N
•Financing MSMEs
•Financial inclusion / literacy
•Facilitating remittances
•Financial services liberalization
•Capital accounts liberalization
•Asia Region Funds Passport
FISC
AL
TR
AN
SPA
REN
CY
•Fiscal reforms
•Open Data Initiative
•Exchange of financial account information
•Base erosion profit shifting
•Tax and crime
FIN
AN
CIA
L R
ESIL
IEN
CE •Macroeconomic
policy
•Disaster risk financing and insurance
•Capital market development
INFR
AST
5R
UC
TU
RE •Knowledge portal
•Standardization of terms and practices
•Maximizing PPPs in infrastructure investment
•Long-term investors
•Urban development
•Regional connectivity
THE CEBU ACTION PLAN (2015-2025):
A TEN-YEAR ROADMAP FOR THE APEC FINANCE MINISTERS’ PROCESS
FOUR PILLARS
STOCKTAKE (2015-2018)
Achievements (2015-2018):
Helped initiate legal,
regulatory and institutional
reforms in several economies
Developed and provided
critical support to regional
initiatives
Laid the groundwork for
structural reforms (roadmaps,
work programs, dialogue
platforms)
REGIONAL
MSME Finance
• 2016, Mekong region: Pilot project
for cross-border exchange of
credit reports initiated (now
ongoing)
Capital markets
• 2015: Rules adjustment enabling
Japan to join Asia Region Funds
Passport (ARFP)
• 2016:APFF study on tax
implications of ARFP helps
accelerate signing of MOC
• 2017: Successful and smooth
mandatory exchange of variation
margin for non-cleared OTC
derivatives
• 2017: Improvements in IFRS17
rules on OCI and CSM
CHINA
• 2016: Start of capacity building to help design new Civil
Code chapters on secured transactions and insolvency
THAILAND
MSME Finance
• 2017: New legislation to broaden scope of assets used as
collateral
VIETNAM
• 2015: Initial steps to build credit information system
(ongoing)
• 2017: New legislation to broaden scope of assets used as
collateral PHILIPPINES
MSME Finance
• 2015: Official FIDN working group established
• 2015-2017: Various steps to build credit
information system
• 2018: New secured transactions bill passed
• 2017: New Warehouse Receipts bill filed
Capital markets
• 2015: Stakeholders agree to enable title-
transfer repo
BRUNEI DARUSSALAM
• 2017: Signed law on secured transactions
• 2017: Initial steps to build credit information system
(ongoing)
STOCKTAKE: Key Achievements (so far)
• 2015: Initiated Islamic Infrastructure Investment
Platform
• 2017: Roadmap for Financial Market Infrastructure
• 2017: Roadmap for Microinsurance
• 2018: Roadmap for New Financial Services Data
Ecosystem
• 2018: Strategy for Digitalization of Trade and
Supply Chain Finance
• 2018: Essential Elements of an Effective Personal
Insolvency Regime
STOCKTAKE: Laying the Groundwork for Structural Reforms
Source: Deutsche Bank, flow (October 2017),
page 18.
http://cib.db.com/insights-and-
initiatives/flow-e-magazine-october-
2017.htm?page=12#gsc.tab=0
KEY FACTORS IMPACTING FINANCE As seen y Deuts he Bank’s flow magazine APFF (Asia-Pacific Financial Forum) Basel III
OECD BEPS (Base Erosion Profit Shifting)
EU AMLD/FTR (Anti-Money Laundering
Directive/Funds Transfer Regulation)
CPMI-IOSCO (Committee on Payments and Market
Infrastructures of the International Organization of
Securities Commissions)
Legal Identity Identifier
EU AIFMD UCITS V (Alternative Investment Fund
Managers Directive / Undertakings for Collective
Investment in Transferable Securities 5th version)
EU Capital Markets Union
EU Recovery and Resolution Directive
EU Shareholder Rights Directive
EU General Data Protection Regulation
EU MiFID II (Markets in Financial Instruments
Directive, Version 2)
EU PSD2 (Payment Services Directive 2(
EU SFTR (Securities Financing Transaction
Regulation)
EU SLL (Securities Law Legislation)
EU T2S (TARGET2 – Securities)
EMIR (European Market Infrastructure Regulation)
EU FTT (Financial Transaction Tax)
EU CSDR (Central Securities Depositories
Regulation)
Benchmarks
Banking separation
US FBAR (Report of Foreign Bank and Financial
Accounts)
US SCCL (Single Counterparty Credit Limits)
US SSC (T+2) (Shortening the Settlement Cycle
toward T+2)
Correspondent banking de-risking
MD APAC/MENA (Market developments in the
Asia-Pacific, Middle East and North Africa regions)
THE IMPACT OF APFF AS VIEWED WITHIN
THE INDUSTRY Creating additional usiness
opportunities a ross the orporate, insurance, institutional, investment
manager, broker dealer, global
custodian, and infrastructure sectors
CONNECTIVITY and INTER-OPERABILITY
• Financial Market Infrastructure
• Funds Passport Regimes
• Trade and Supply Chain Finance
• Data ecosystem
• Long-term infrastructure investment
LINKING BOTH SIDES OF THE PACIFIC OPPORTUNITIES:
Need More Information?
Contact:
Dr. Julius Caesar Parreñas
Coordinator, Asia-Pacific Infrastructure Partnership / Asia-Pacific Financial Forum
Senior Advisor, Mizuho Bank, Ltd
1-5-5, Otemachi, Chiyoda-ku, Tokyo 100-8176, Japan
+81-3-5224-2601 caesar.parrenas@mizuho-bk.co.jp
For information on APFF, please visit:
https://www2.abaconline.org//page-content/22613276/Asia-Pacific%20Financial%20Forum