Asian economies must weigh the cost of new regulations on institutions, against the perceived benefits that those regulations have for the economy and society. Secondly, international standards must be customized according to Asian economies business models. The regulatory and supervisory regime must target well-defined risks that could have systemic implications.
There are two important points to note. The first point is how to understand the background of the current global economic downturn. And the second point is how to understand the differences in the pace of recovery between advanced economies and emerging economies, which has recently become marked. I will start with the first point.