Thailand : Implications of Regional Financial Integration

Despite substantial progress in regional integration in recent years, financial integration in ASEAN has yet to catch up. Our analysis finds that improving regulatory and institutional quality and reducing restrictions on capital flows can promote regional financial integration. The empirical evidence also suggests that regional financial integration can help ASEAN better weather global shocks, foster economic rebalancing, and achieve higher economic growth. Financial integration, however, pose challenges and risks. A gradual approach would therefore be appropriate for promoting regional financial integration