Businessmen from 22 Asia-Pacific economies yesterday urged their governments to strengthen monetary regulations, establish surveillance systems among markets and create a contingency financing for countries in difficulties as quick responses in the light of the financial crisis.

In a policy statement issued at the end of the two-day 22nd CACCI Conference in Manila, the Confederation of Asia-Pacific Chambers of Commerce and Industry (CACCI), urged the adoption of initiatives that would set in place a regulatory framework that is able to protect public interest and maintain market confidence, while at the same time facilitating the ability of a financial market to provide competitive financial products and services. The measures were directed at national, regional and international organizations in charge of trade, development, financial-related issues and market regulations, and economic policymakers.

Key to these initiatives is the group’s call to strengthen the regulatory and supervisory role of Central Banks to enable them to promote an efficient and effective banking system.

CACCI also pressed on the need to establish a regional monetary policy mechanism to make available adequate liquidity in times of crisis and provide contingency financing for countries in difficulties.

The group said it is necessary to build credibility by pursuing a sound macroeconomic policy, enforcing prudential regulations, and discouraging short-term external borrowings through price-based or quantitative capital controls.

In this light, the CACCI also calls for improved regional macroeconomic surveillance through the creation of regional institutions to undertake surveillance and related matter.

The group brought up the idea of re-establishing and expanding the coverage of the Manila Framework Group, which formed to coordinate efforts to respond to economic and financial crises, and strengthening and similarly expanding the coverage of the ASEAN Surveillance Process.

CACCI wants to promote training and sharing of knowledge through the forging of stronger links between regulators in the region with established regulators such as the Bank for International Settlements, the International Organization of Securities Commissions and the International Association of Insurance Supervisors (IAIS);

CACCI said it is time for business chambers in the region to advocate the adoption of risk management "as a strategic discipline and not merely a regulatory compliance, particularly for financial institutions."