Regional safety nets increase confidence in a country’s financial system and economy, and reduce the threat of a financial crisis. A prime example of such a regional safety net in the Asian region is the Chiang Mai Initiative Multilateralisation (CMIM).
Some shareholders might see it as reducing their ability to make profits, at least in the short-term. But as Alan Greenspan’s admission clearly indicates, the pursuit of short-term profitability without regard to the risks that it involves is in no one’s interest – particularly not the interests of the shareholders themselves.