Financial system reform in Thailand

In 2004 Thailand began to implement the Financial Sector Master Plan (FSMP), a long-term reform program aimed at creating a more efficient, transparent, and internationally competitive financial sector that can serve a larger proportion of the Thai population. With the first phase of the FSMP completed in 2009, Thailand announced that a second phase of financial sector reforms will begin in 2010. This Asia Focus report provides an overview of the FSMP’s development, highlights key reform measures completed under Phase I, and describes measures proposed under Phase II and some of the challenges regulatory authorities may face during implementation.Banks and banking - Thailand ; Financial market regulatory reform ; Financial services industry - Asia

Japan's cross-shareholding legacy: the financial impact on banks

Japanese banks' financial results for the Fiscal Year Ending (FYE) March 2009 marked their worst performance in recent years. Although soaring loan loss charges contributed to the banks' weak performances, losses on equity securities were also a key driver. These losses have drawn renewed attention to the practice of Japanese banks owning stock in the companies to which they lend through so-called “cross-shareholdings,” and the market risk resulting from these holdings. This Asia Focus provides a brief background on the development of cross-shareholding. The report also examines some of the problems associated with shareholdings and considers measures that banks and the government have taken to unwind these shareholdings.Banks and banking - Japan ; Stockholders

Banking reform in Vietnam

Vietnam’s banking sector is expected to have one of the highest growth rates in Asia during the next few years due to the country’s continued economic expansion, rising household incomes, and relatively low penetration of existing banking services. Over the past two decades, the Vietnamese government has undertaken a series of reforms to strengthen and modernize the sector as part of the country’s move towards a more open and marketoriented economy. Many of these reforms have also been motivated by Vietnam’s growing participation in international agreements and ongoing efforts to adopt international standards such as the Basel capital framework. Key reforms include a restructuring of the banking system, a gradual opening to foreign investment, the partial privatization of state-owned banking institutions, and measures to strengthen the capitalization of Vietnamese banks. This Asia Focus report provides an overview of Vietnam’s banking sector, reviews significant developments since the mid 1980s, and highlights key challenges to reform implementation.Banks and banking - Vietnam