ASEAN Financial Integration Push Targets Greater Regional Resilience

ASEAN financial integration is set to deepen as regional central banks seek stronger cooperation and resilience against inflation, financial vulnerabilities, artificial intelligence-related disruption and fiscal pressures.

The 32nd ASEAN Senior-Level Committee on Financial Integration, co-chaired by the State Bank of Vietnam and Bank Indonesia, reviewed progress across banking integration, capital markets, financial inclusion, payment systems and sustainable finance.

Bank for International Settlements Deputy Head James Yetman highlighted four challenges confronting central banks: persistent inflation, the potential economic impact of AI, rising financial risks and increasing fiscal pressures.

Participants also discussed Project Revive, an initiative intended to overhaul ASEAN’s financial cooperation mechanism from 2027.

The changes are designed to streamline regional coordination and concentrate resources on priority areas, potentially strengthening ASEAN’s ability to respond collectively to financial and economic challenges while advancing the longer-term integration of its banking, capital-market and payments systems.