Local Currency Collateral for Cross-Border Financial Transactions

Asian Development Bank

Local Currency Collateral for Cross-Border Financial Transactions
Format
Paperback
Publisher
Asian Development Bank
Country
PH
Published
30 November 2022
Pages
84
ISBN
9789292697136

Local Currency Collateral for Cross-Border Financial Transactions

Asian Development Bank

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This report looks at how the use of local currency-denominated bonds for cross-border collateral transactions can be promoted in ASEAN+3 to develop regional bond markets.

Active use of local currency-denominated bonds for cross-border collateral transactions can help by mitigating risks, reducing the credit costs of financial institutions, and expanding market liquidity. The report identifies the challenges faced by regional collateral markets and proposes seven policy recommendations for promoting the cross-border use of local currency bonds as collateral in the Association of Southeast Asian Nations plus the People's Republic of China, Japan, and the Republic of Korea-known collectively as ASEAN+3.

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