Last Update : 6 Oct 2008               Search SEACEN Web Site
 
 
Background

The SEACEN Expert Group (SEG) on Capital Flows was established by the SEACEN Centre in May 2000, in response to the concern expressed by the SEACEN Governors at the January 2000 Conference in Kuala Lumpur, over the need to manage capital flows to ensure stability in regional financial markets. At its 20th Meeting in Singapore on 1 June 2001, the SEACEN Board of Governors (BOG) also approved the proposal by the SEG to set up an electronic data exchange facility at the SEACEN Centre.

 
Objectives

The main objectives of the SEG are:

  1. to develop a regional framework to promote information sharing on capital flows among members; and
  2. to draw up concrete and practical proposals that members can implement individually or collectively to enhance the management of capital flows.
 
Membership

The SEG comprises 15 member central banks, viz. the 12 SEACEN member central banks, and 3 SEACEN observers, namely the Reserve Bank of Australia, Hong Kong Monetary Authority and Bank of Japan. The SEG is co-chaired by Bank Negara Malaysia and Bangko Sentral ng Pilipinas.

The SEACEN Centre serves as the secretariat to the SEG. Its main role is to assist the SEG in implementing the work programme as decided by the SEG, such as providing data exchange facility, processing and analysing capital flows data as reported by members, as well as providing secretariat support to the SEG meetings and teleconferencing calls.

 
Outcomes of the SEG Work

Since its establishment in 2000, the SEG has held five meetings (in Kuala Lumpur in May 2000, Ulaanbaatar in September 2000, Kuala Lumpur in May 2001, Ulaabaaatar in June 2002 and Kuala Lumpur in March 2005). The SEG Meetings were normally held back-to-back with other SEACEN events in order to minimise travel time and costs. Follow-up work by the Secretariat and consultations among SEG members were conducted via electronic mail.

The SEG work have been focusing on three main areas, namely developing a regional framework to promote the sharing of capital flows data; assessing the methods and systems of risk management among members; and capacity building. Specifically, the outcomes of the SEG work are summarised as follows:

  1. SEG Directory
    A directory of contact persons among the SEG members (Directory of Expert Group on Capital Flows) has been compiled to facilitate the exchange of information or clarifications among members. The Directory is updated regularly to ensure that the information is current.


  2. Exchange of Data on Capital Flows
    1. SEG Data Templates on Capital Flows
      To track movements of capital flows and other related financial market data in the individual member economies, the SEG regularly report a common set of data templates to be shared among members through the SEACEN Website.


    2. Electronic Data Exchange Facility
      As an effective means of exchanging data, an electronic data exchange facility has been installed at the SEACEN Centre. The data exchange facility includes:
      1. a dedicated web server to publish the SEG data templates and to house the SEG database; and

      2. security software and devices to ensure the integrity and confidentiality of data, comprising secure electronic mail transmission; secure authentication; and secure on-line internet connection.
    3. At present, data from participating SEG members are regularly published at the secure segment of the SEACEN Centre Website. Only the authorised officials of the SEG member central banks could access the SEG database.

      Based on the data reported by the SEG members, the SEACEN Centre has been able to make a preliminary assessment of both current trends in capital flows in the region and capital flows expected in the next 12 months, as well as identify potential risks and areas of vulnerabilities.

  3. Teleconferencing Exchange
    In addition to the exchange of data templates, the SEG also holds, as an when necessary, teleconferencing exchange to discuss trends, developments and issues of concern arising from the SEG data analysis report. Other related issues of current interest are also discussed.


  4. Capacity-building in SEACEN member banks
    To promote capacity building and exchange of views and experiences, the SEG meetings included dialogues on topical issues relating to capital flows. Core work in the SEG were several workshops to enhance expertise in the areas of compilation and usage of international finance statistics, risk management of capital flows and development of early warning systems. Experts in these areas from the Ministry of Finance of Japan, Bank for International Settlements (BIS), the World Bank, the International Monetary Fund (IMF) and international bankers shared their knowledge and experiences and provide guidance to the SEG members. There are also meetings among technical staff to enhance data collection capacity.
 

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