Even with the sizable Foreign Exchange (FX) holdings and good credit ratings of its top assets, Asia remains vulnerable to various shocks. This paper highlights the limited crossborder asset pledgeability as a significant factor for the lingering vulnerability in Asia. The dichotomy in asset holdings between pledgeable FX and non-pledgeable domestic assets in major economies in Asia has been the source of increasing stabilization costs as well as weakened market momentum in the region. Specifically, the peculiar feature of asset holdings in Asia reflects seriously deficient cross-border asset pledgeability that is left unaddressed. Asset pledgeability contributes toward financial stability via three channels: 1) capital market development by recognizing the role of collateral, 2) increased shock absorption capacity via collateral management, 3) and the newly activated safe asset provision. Therefore, it is crucial to go beyond the usual market development strategy and expand the overall asset pledgeability in the region that has remained unduly depressed.

中文翻译：

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跨境资产质押，增强金融稳定性

即使拥有大量外汇（FX）和顶级资产的良好信用评级，亚洲仍然容易受到各种冲击的影响。本文着重指出，有限的跨境资产质押是造成亚洲持续脆弱性的重要因素。在亚洲主要经济体中，可抵押外汇和不可抵押国内资产之间的资产二分法是造成稳定成本增加以及该地区市场动力减弱的根源。具体而言，亚洲资产持有的特殊特征反映了严重的跨境资产质押能力不足，这一问题尚待解决。资产质押通过三个渠道为金融稳定做出贡献：1）通过意识到抵押品的作用来发展资本市场； 2）通过抵押品管理提高缓冲能力；3）和新激活的安全资产拨备。因此，至关重要的是超越常规的市场开发策略，并在仍然受到过度压抑的地区扩大整体资产质押能力。