The IMF Working Papers series is designed to make IMF staff research available to a wide audience. Almost 300 Working Papers are released each year, covering a wide range of theoretical and analytical topics, including balance of payments, monetary and fiscal issues, global liquidity, and national and international economic developments.
This paper analyzes the transmission of global liquidity to the ASEAN-5 countries
(ASEAN-5), including the impact on financial landscapes and risks to financial stability.
It finds that global liquidity transmission and changing financial landscapes have
contributed to increases in risks to financial stability in ASEAN-5. Therefore,
policymakers in ASEAN-5 should prepare for possible liquidity tightening, strengthen
regulation of nonbanks, and establish a comprehensive financial stability framework. A
number of couontries are well-advanced in this process.