The specific plans for the second pillar, CAL, are still being considered and developed
but certain principles have been enunciated. The AEC Blueprint defines three principles
to shape the liberalisation: orderly liberalisation in line with member countries’ policy
priorities and conditions; safeguards against macroeconomic or financial instability
that may arise from liberalisation; and ensuring that the benefits of liberalisation are
shared among all member states. Some goals for capital account liberalisation through
2015 are outlined in the AEC Strategic Schedule on Freer Flows of Capital, the ASEAN
Capital Market Forum Implementation Plan, and the Working Committee on CAL plan;
but these goals as well as the timetables are rather general (Park and Takagi, 2012).18
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.19