Asia needs to develop bond markets -ADB head
NUSA DUA, Indonesia, May 3 (Reuters) - Asia needs to develop its debt markets to better channel the region's massive savings into investments and stave off another crisis, the president of the Asian Development Bank said on Sunday.
"By developing the bond market, Asia's large savings could be intermediated for productive investment in Asia," ADB President Haruhiko Kuroda said at the bank's annual meeting in Indonesia.
"By so doing we may be able to reduce the so-called global imbalances which may have been one of the causes of this crisis."
Transforming the region's household savings into investments has been a difficult task for Asian policymakers and bankers.
Japan, the region's biggest economy, has an estimated $15 trillion in household financial assets, with most of that parked in low-yielding savings accounts.
Earlier on Sunday, Japan, China and South Korea finalised details of an emergency $120 billion liquidity fund for 13 Asian nations, a key regional initiative to counter the global economic downturn. [ID:nSP466904] (Reporting by David Dolan; Editing by Tomasz Janowski)
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