Intl bankers expect AFCA to boost financial collaboration, exchanges

The rollout of the Asian Financial Cooperation Association on Monday has been widely acclaimed in the international financial community.

Ha Yung-ku, chairman of the Korea Federation of Banks, said the AFCA and financial institutions in South Korea can cooperate in a mutually beneficial approach, as the organization provides greater support to the growth of the banking sector in his homeland and South Korean bankers share products and experiences with their peers in Asia.

The South Korean federation and Shinhan Bank, another financial institution from South Korea, are both founding members of the AFCA.

The AFCA is designed to stabilize the Asian financial market, the Japanese Broadcasting Corp, more commonly known as NHK, reported.

Japanese newspaper Nikkei reported that the new regional cooperation organization is expected to provide an Asian voice in the decision-making process in the global financial community.

Six Japanese institutes, including the Bank of Tijti-Mitsubishi UFJ, Sumitomo Mitsui Banking Corp and Mizuho Bank, have joined the AFCA as its co-founders.

Janos Muller, chief adviser of the Hungarian Banking Association, a founding member of the AFCA, and Levente Kovacs, the HBA's secretary-general, co-authored an article titled Hungary's Link to Financial Cooperation with Asia, published on the Journal of Economic Literature based in Hungary last year.

There are opportunities for cooperation that serve the interests of both the European Union and China, and the chances of establishing such win-win collaborations should not be passed up, they said in the article.

EU officials paid close attention to the AFCA's preparatory work and learned about its founding members, commitments and relations with other international organizations, such as the G20 and the International Monetary Fund.

Ten European financial institutions, including Prudential, Lloyd's and Standard Chartered, are among the AFCA members.

Zhou Xiaochuan, governor of the People's Bank of China, the country's central bank, said at an international forum in mid-May that the AFCA will offer extensive support to financial collaboration in the region.

Tian Guoli, chairman of Bank of China and the AFCA chairman, said: "The AFCA will follow common international practices, improve the association's governance and promote the standardization of its operational structure.

"We encourage the sharing of resources and achievement among members and call for cooperation and exchanges via various means, such as establishing specialized committees and promoting the use of big data technologies.

"We are working to make the AFCA a bridge linking Asia and the rest of the world, providing an indispensable window into the continent."

Yi Huiman, chairman of Industrial and Commercial Bank of China, said his bank took an active part in the association's founding, and is committed to advancing the construction of the Asian financial market and contributing more to enhancing regional cooperation in the industry.

Financiers and government officials from Hong Kong are the earliest non-mainland group that turned their eyes to the AFCA's establishment. Shao Shanbo, chief adviser to the Hong Kong Special Administrative Region, visited the AFCA founding team in July 2015 to explore cooperation probabilities.

Tsang Chun-wah, then financial secretary of Hong Kong, said on a visit to the founding team at the end of 2015 that Hong Kong, as an international financial center, is ready for cooperation.

zhuanti@chinadaily.com.cn

(China Daily 07/24/2017 page5)