significant proportion of asia ’ s syndicated borrowing. singapore, for its part, has evolved into the main banking center for southeast asia. asian emerging market economies – some generalisations in the current context the growing importance of the asian economies in the global economy and the dynamics of the asian economic integration are also reflected in the added significance of the asian emes ( aemes ) as the sub - set of the emes in the global economy. while the aemes are not homogenous in their economic systems, structure and size, it may be useful to consider some generalisations in the current context recognizing the severe limitations of such generalizations whenever a country - context becomes the focus. developments in the japanese economy are very critical to the aemes and there is scope for considerable applied research in this area, recognising the signs of resurgence in the japan ’ s economy. the narration that follows essentially relates to the aemes, commencing with favourable factors. first, they currently enjoy strong global demand for their exports, favourable terms of trade and easy access to external financing. second, comfortable foreign currency reserves along with reduced external debt as percentage of gdp serve as cushion against any sudden external shocks. third, though public debt in some asian economies still remains at elevated levels, most of the debt is of longer maturity, with higher proportions in local currency. fourth, the banking system has been strengthened through restructuring and supervisory systems have improved. financial markets have evolved considerably in most of these economies. fifth, the resilience to external shocks is reinforced by a combination of lower balance sheet exposure to exchange rate risks, lower refinancing risks in debt structures, strong financial systems and above all, an observed tendency for greater policy flexibility. sixth, most of the economies display strong growth - performance and reasonably well - anchored inflation expectations. there are, however, several challenges being faced by the fast - growing aemes, particularly in sustaining the hard - won stability while maintaining growth momentum. first, while growth impulses are strong in asia and easing of oil - prices should moderate inflationary pressures, there are concerns about inflationary pressures being reinforced by ample liquidity driven by excess capital flows and rapidly rising credit. strong capital inflows into asia pose a challenge to monetary management. while some appreciation of currencies of countries enjoying current account surplus is evident, the macro policy may need to be predominantly governed by the compulsions of domestic supply and demand considerations. the currency appreciation or depreciation could, at

##mediation leveraging on technology and new business models will emerge. with the exponential growth of digitisation and online commerce in india, the reserve bank has also directed its policy efforts to put in place a state of the art national payments infrastructure, while ensuring a safe, secure, efficient, cost - effective and robust payments ecosystem. the reserve bank is positioning itself to provide an enabling environment in which regulated entities are catalysed to exploit these new avenues, while maintaining and preserving financial stability. the regulated entities, on their part, need to strengthen their internal defences to identify emerging risks early and manage them effectively. financial stability is a public good and its resilience and robustness needs to be preserved and nurtured by all stakeholders. we need to support economic revival and growth ; we need to preserve financial stability. thank you.