The Chiang Mai Initiative – a multilateral currency swap arrangement among Asian countries – and cross-border usage of collateral assets, which are eligible instruments for central banks, are notable examples of regional financial coordination to complement macroprudential policy of each country. In addition to global financial coordination, when considering macroprudential policy, global financial regulation is also a key factor.
If the financial intermediation function of internationally active banks subject to macroprudential regulation is stable, then financing for development is also expected to be stable in emerging countries.