The Chiang Mai Initiative Multilateralisation (CMIM) has been designed to provide U.S. dollar liquidity support in response to urgent short-term liquidity difficulties and/ or balance of payments difficulties experienced by any ASEAN+3 member.
The last global financial crisis made clear that the International Monetary System needs strong financial backstops to provide crisis-time liquidity to countries hit directly by large economic shocks or affected by crisis contagion.
The quantitative easing policy adopted by the advanced economies since 2009 has led to an abundance in global liquidity.
Banks continue to play a dominant role in the financial sectors of ASEAN+3 economies, and banking supervisors are building capacity to meet the challenges as the banking sectors in ASEAN+3 economies become deeper and more integrated.
Non-financial corporates (NFCs) in the ASEAN+3 region have benefited from greater bond issuances post the Global Financial Crisis but this also potentially exposes them to higher risks.