Asia must guard against another financial crisis, Philippines central bank chief says
SPY•Philippine central bank Governor Eli Remolona said Asian countries should do more to guard against another financial crisis like the one that began in 1997. IMF and Japan officials cited progress in assessing vulnerabilities and risks including energy shocks, inflation and supply-chain pressures.
1. Warning on crisis risks
Eli Remolona, governor of the Bangko Sentral ng Philippines, urged Asian countries to recall the region’s late-1990s financial crisis and strengthen efforts to prevent a recurrence. He said large capital inflows had preceded the crisis, which followed what the World Bank had called the “East Asian miracle.”
2. Regional vulnerabilities
IMF Asia and Pacific Department Director Krishna Srinivasan said the IMF had improved its assessment of financial vulnerabilities and spillovers, including frameworks for managing volatile capital flows. He also cited energy intensity and reliance on oil and gas imports as risks for some ASEAN economies. Japan Vice Finance Minister Atsushi Mimura pointed to energy shocks from the Middle East conflict and rising inflation, and called for targeted, tailored and temporary fiscal support. He also urged greater ASEAN investment in critical minerals and energy supply chains.
