Private sector initiatives The financial sector presents an outstanding example of another major trend in contemporary governance, namely, the turn to nonofficial mechanisms of regulation. A number of national securities and exchange commissions have lain in the private sector for some time, of course, and IOSCO also includes over fifty securities exchanges and dealers associations as Affiliate Members.
In principle, financial integration facilitates domestic financial development, improves resource allocation within and across countries, and ultimately promotes growth. The diverse stages of development and demographics of Asian countries offer fertile ground for such efficiency gains from financial integration. These benefits are relatively well understood. Another important but less known benefit is a stronger market base for financial stability.