Similarly, the development of the domestic financial system particularly the domestic financial markets, the strengthening of the surveillance system and the legal, regulatory and supervisory frameworks, have increased the capacity and capability to manage consequences on access to cross border financing, and from quantitative easing, deleveraging activities, and financial sector resolution in the major economies. In addition,  2  BIS central bankers’ speeches  this has been reinforced by the building of buffers during the good times. Financial intermediaries remain well capitalised with strong buffers, while the international reserves remain sufficient to deal with surges and reversals in capital flows. A more recent development in this decade is greater regional collaboration and cooperation. Asia is well ahead in the areas of surveillance arrangements, financial safety nets, and crisis management. These frameworks and arrangements have been built up during the good times. Information sharing and the establishment of regional arrangements and platforms, including the building of regional financial infrastructures and markets, are not only to facilitate the efficient intermediation of financial resources, but also to safeguard financial stability in the region. This trend paves the way for coordinated policy actions to manage and mitigate the risks and vulnerabilities to the region. Conclusion The global economic and financial environment remains highly dynamic and uncertain. While emerging Asia is unmistakably contributing to reshaping the configuration of the global economy and the international financial system, the fundamental underlying factors driving this global transformation needs to be continually reinforced. It will require our own continuous economic and financial transformation.

Asia is one of the most diverse regions in the world in terms of size, stage of development, resources, economic structure, degree of openness and market orientation. In harnessing each other’s comparative advantage and leveraging on the regional complementarities, for Asia as a region, the whole has become significantly greater than the sum of its individual economies. Over the recent decade, this has generated a significant expansion in intra-regional trade, investment and financial flows. This trend is expected to intensify significantly going forward. The diversity of emerging Asia also presents immense opportunities in terms of the growing markets across the entire spectrum of products and services. BIS central bankers’ speeches  1  The third key trend that is shaping the future of the region is its demographic advantages. Asia is by far the most populous region of the world, accounting for 60 per cent of the world’s population. A vast, growing and young middle class population, with increasing affluence, will be a key defining characteristic, and an underlying growth driver of Asia. By 2030, it is projected that the current 500 million Asian middle class will grow by more than six-fold, to be more than 3 billion. This will have significant implications on global consumption and trade patterns, and on urbanisation and infrastructure development. The scale is immense. The Asian Development Bank has also projected that over this decade, Asia will require an investment of over 8 trillion US dollars in infrastructure development.