Policymakers visiting Asia from the US and Europe in recent weeks would have returned home with the impression that this was a financial crisis mercifully short in duration for most of the region. The severe downturn experienced elsewhere caused China and India, the region's two largest developing economies, to pause for breath – but only until the summer, when strong growth returned.
That said, the crisis did have an impact, and it leaves challenges to be overcome. Japan's economy suffered, as did the open economies of Hong Kong and Singapore, which rely heavily on global trade passing through their ports. Some of the region's banks also had to move swiftly to shore up their capital ratios, while a handful had to write off their holdings relating to US subprime debt. But, tellingly, there was barely any exposure to exotic debt instruments.
It is against this relatively positive backdrop that regulators across the Asia-Pacific region are discussing how they can contribute to the global debate on fresh regulation. Few expect to tear up their rulebooks.