After a series of crises originating from the US and the Eurozone, global finance has entered a new and uncertain phase. Investors have become more conservative, financial institutions are retreating from global markets, deleveraging in the private sector is almost the norm and traditional sources of funds like deposits have become more important.

The governance and regulatory landscape in the financial sectors has also changed much; e.g. the Basel III and macro-prudential regulations as well as the development of OTC derivatives clearance markets in multiple locations. At the same time, China, the new economic power house, is developing its own regulations, exerting its influence on Asian economies and beyond. Globally, rising regulatory constraints and uncertainties distort incentives and hamper financing and financial development.

These developments have implications in Asia: variegated global development and the extraterritorial influences of governance and regulatory changes have created turbulence in cross border capital flows, helping or retarding capital market development and the efficacy of Asia's capital allocation and growth.

In this session, we have invited leading industry experts to give their perspectives on these changes, their impact, how Asia should respond, and what further research is needed to better equip our practitioners and public policy decision-makers.