The potential benefits of the ASEAN initiatives go beyond their direct impacts on
regional financial integration. The initiatives are likely to also help to strengthen linkages
between ASEAN and international financial markets generally, including those in the
rest of Asia and in more advanced economies. Moreover, the efforts are already creating
important incentives for member countries to strengthen their financial systems in
preparation for integration. This is particularly the case for the banking integration
initiative, which is imparting some urgency to efforts by banks and regulatory authorities
in the region to improve the capabilities of their banking systems to meet the increased
completion that integration is likely to bring.