MANILA -- The Executives' Meeting of East Asia-Pacific Central Banks (EMEAP) 2 announced on Tuesday the launch of securities lending in the Asian Bond Fund (ABF) 3 Pan-Asia Bond Index Fund (PAIF) 4.
Effective July 10, selected local currency-denominated bonds held within PAIF will be made available for lending in the regional securities lending markets.
The EMEAP has actively led the ABF Initiative to promote efficient financial intermediation in the region.
The ABF has played a catalytic role in improving market infrastructure, accelerating tax and regulatory reform to facilitate cross-border investments, and raising investor awareness and interest in Asian bonds.
Since the inception of ABF in 2003, the size of Asian local currency-denominated bond markets has grown almost eight-fold to exceed USD10 trillion, providing more funding and investment instruments in local currencies.
The launch of PAIF Securities Lending represents another milestone in the ABF Initiative.
The EMEAP believes that PAIF Securities Lending will improve the liquidity of local currency-denominated bonds in the secondary markets, consistent with the EMEAP’s common goal to broaden and deepen bond markets in the region.
The EMEAP also believes that PAIF Securities Lending will help to enhance the functioning of regional money markets.
The members of EMEAP continue to cooperate on various regional initiatives to develop the regional bond markets and will collaborate with the relevant authorities and market participants to ensure the success of PAIF Securities Lending in both improving the liquidity and enhancing the functioning of regional bond markets.
The EMEAP remains committed and unified to lead the ABF Initiative. (BSP-PR)
