FINANCIAL MARKET OF THE ASIAN REGION

Abstract

The article explores the key areas of development of banking markets; the banking systems of the Asian countries are considered; the historical aspects of the development of banking in the Asian region, the place of the region 's banks in the world ranking are analyzed. Asia has been the world's largest regional banking market for a decade. Recently, consolidation processes have intensified due to several factors, including the low level of bank capitalization; a large number of small banks with an inefficient management system, which negatively affects the stability of the entire banking system; the emergence of new technologies and management methods, the implementation of which requires significant financial resources. China's big banks continue to look for opportunities for inorganic growth in Southeast Asia. Banking regulators in Southeast Asia aim to consolidate and seek to attract large banks to take over non-performing banks. The Asian market of banking consolidations is analyzed and the peculiarities of the development of the market of banking institutions in the direction of consolidation of their activity are determined, the influence of economic cycles on the development of global consolidation processes in the banking sector and the global financial crisis of 2008 are considered. The organizational and economic measures of governments and relevant institutions for regulation and supervision of the financial and banking sectors in countries with the most developed markets for banking services are outlined. Particular attention is paid to the study of the factors influencing the implementation of Basel III instruments and their impact on banks in the Asian region. Basel III, which was developed and implemented in response to the challenges of complex Western financial systems, has also been widely implemented in Asia-Pacific banking systems with relatively small capital markets and limited securitization. Tighter capital and liquidity requirements under Basel III may constrain bank lending and economic development. It was determined that Asian regulators, who quickly signed Basel III, which was designed primarily to eliminate violations of the law, made Asia-Pacific banking systems more resilient and banks withstood the global financial crisis much better than the Asian financial crisis.