Joint Press Communiqué: 53rd SEACEN Governors' Conference / High‐Level Seminar and the 37th Meeting of the SEACEN Board of GovernorsRef No : 17 Dec 2017 Embargo : For immediate release
The Bank of Thailand hosted the 53rd SEACEN Governors' Conference / High‐Level Seminar and the 37th Meeting of the SEACEN Board of Governors between 15-17 December 2017, in Bangkok, Thailand. This coincided with the celebrations of the 75th Anniversary of the establishment of the Bank of Thailand.
The overall theme of the Conference was "Pursuing Stability in a World of Instability." Governors and Managing Directors as well as other delegates from SEACEN member Central Banks and Monetary Authorities participated in the events.1
At the start of the Conference, Agustín Carstens, General Manager, Bank for International Settlements, delivered an address on "Risks to Financial Stability", in which he highlighted the risks on the financial system arising from policy normalisation, geopolitics and technological innovations. Later, Jacob Frenkel, Chairman, JPMorgan Chase International delivered remarks on "Central Banking and the Global Economy". Governors discussed geopolitical risks and implications for central banks, given the quasi-fiscal and redistributive nature of monetary policy, the more politically-charged context in which monetary policy is conducted, as well as the complications that political uncertainty has on economic assessment for policymaking.
Governors also deliberated on the implications of technological innovations for central banks, in particular how financial innovations have been reshaping the financial landscape. On the one hand, they provide benefits and opportunities, but on the other hand also pose challenges for financial supervisors and policymakers, especially as technology may change dynamics of prices, employment and consumption patterns as well as bank business models.
Finally, Governors discussed the need to revisit central bank mandates after the global financial crisis, including the extent to which financial stability should be incorporated into the monetary policy framework. The environment of persistently low inflation, uneven growth, accumulating financial imbalances and capital flow volatility have complicated macroeconomic policy formulation. Challenges include changing inflationary processes as well as the effectiveness of monetary policy to safeguard the economy against financial imbalances and shocks.
Governors discussed policy options to address these challenges, namely the possible inclusion of financial stability in the mandate, the use of macroprudential measures which require policy co-operation and co-ordination with other relevant policymakers. Governors also discussed the need to recognise the peculiarities of emerging market economies, which may require policy responses that do not necessarily coincide with mainstream thinking and practice.
The Board of Governors expressed their appreciation to the outgoing Chairman, Kyaw Kyaw Maung, Governor, Central Bank of Myanmar, and to the Bank of Thailand for the excellent arrangements and warm hospitality in hosting this year's SEACEN Governors' Conference and High‐level Seminar and the SEACEN Board of Governors Meeting. Governors elected Veerathai Santiprabhob, Governor, Bank of Thailand as the new Chair of the SEACEN Board of Governors. In addition, Governors approved the 2018 SEACEN financial budget, endorsed the SEACEN 2020: Blueprint for Excellence 2018-2020 and look forward to its successful implementation. Governors accepted with thanks the offer of the Central Bank of Sri Lanka to host the 54th SEACEN Governors' Conference and 38th Meeting of the SEACEN Board of Governors in 2018.
1 SEACEN comprises the 20 member central banks and monetary authorities of Brunei Darussalam, Cambodia, China, Fiji, India, Indonesia, Hong Kong SAR, Korea, Lao PDR, Malaysia, Mongolia, Myanmar, Nepal, Papua New Guinea, Philippines, Singapore, Sri Lanka, Chinese Taipei, Thailand and Vietnam, as well as seven Associate Members and eight Observers.
© Bank Negara Malaysia, 2017. All rights reserved.