On September 19, 2025, Ms. Filianingsih Hendarta, Deputy Governor of Bank Indonesia, and Mr. Pham Thanh Ha, Deputy Governor of the State Bank of Vietnam (SBV), co-chaired the 30th Meeting of ASEAN Senior-Level Committee on Financial Integration (SLC) in Yogyakarta, Indonesia.
The SLC, established in 2011 as a Deputy Governor–level committee under the ASEAN Banking Integration Framework, provides regular guidance and coordination for the implementation of regional financial integration initiatives. SBV and Bank Indonesia are co-chairing the SLC for the 2024-2026 term.
Deputy Governor Pham Thanh Ha chairs the Meeting
In his opening remarks, Deputy Governor Pham Thanh Ha highlighted the vital role of the SLC as a high-level forum for dialogue, cooperation, and coordinated action to promptly respond to external shocks. He noted that while ASEAN continues to maintain stable growth momentum in 2025 thanks to strong domestic demand and investment, the region still faces challenges from global uncertainties, financial market volatility, and heightened geopolitical risks. The year 2025 also marks an important milestone as ASEAN develops the ASEAN Economic Community (AEC) Strategic Plan for 2026-2030. Accordingly, he stressed that discussions at this SLC meeting would help shape the future course of ASEAN financial integration, toward a more deeply integrated, sustainable, and resilient regional financial system.
During the session on global and regional macroeconomic developments, international organizations presented assessments of global and ASEAN economic outlooks. The Bank for International Settlements (BIS) projected weaker global growth and inflation in 2025 amid rising uncertainty and financial volatility. BIS underlined structural, fiscal, and macro-financial risks-particularly high public debt burdens, persistently elevated household inflation expectations following the post-pandemic surge, and signs of excess supply of government bonds. At the same time, the growing role of non-bank financial institutions (NBFIs) in providing liquidity has heightened the financial system’s vulnerabilities. BIS warned that these factors could amplify the negative impacts of external shocks, increasing risks to global growth and financial stability.
Co-chairs and heads of delegations take a commemorative photo
On the regional outlook, the ASEAN+3 Macroeconomic Research Office (AMRO) forecast ASEAN’s growth to slow to 4.4% in 2025 and 4.2% in 2026, driven mainly by domestic demand, while exports would be affected by U.S. trade policy. Inflation is expected to remain low and stable. Risks to the region include rising trade protectionism, financial market volatility, and commodity price swings, though foreign direct investment (FDI) and external demand could provide positive offsets. AMRO noted that ASEAN lacks sufficient foundations for deeper integration due to development gaps and low intra-regional investment. Against this backdrop, AMRO recommended advancing regional integration initiatives, leveraging external FDI alongside strengthening intra-regional investment, with the aim of raising intra-ASEAN trade to 30-40% by 2050.
The meeting also discussed progress on the AEC Strategic Plan 2026–2030, the Finance Sectoral Plan 2026-2030, and SLC initiatives such as the ASEAN Green Map, ASEAN Taxonomy, cybersecurity incident information-sharing, and the ASEAN Swap Arrangement. Participants also heard progress reports from ASEAN working groups in the banking cooperation area. These groups updated on the implementation of priority initiatives and plans for 2026-2030, focusing on enhancing payment connectivity and financial integration, promoting financial inclusion, liberalizing capital accounts, and strengthening resilience against financial risks. Delegates acknowledged and commended the working groups’ efforts to maintain progress and underscored the importance of these activities in advancing ASEAN financial integration.
A representative of partner central bank takes a commemorative photo and express his appreciation to the Co-Chairs of the 30th SLC Meeting
At the Meeting, the SBV presented the ASEAN Banking Sector Risk Monitoring Report (RMT), which was developed based on assessments by financial-banking working groups. The report highlighted opportunities for cooperation, including digitalization, financial connectivity, and sustainable finance, while also identifying complex risks. Key risks included: (i) cybersecurity threats and digital vulnerabilities in the financial system; (ii) regulatory fragmentation and gaps, especially regarding FinTech, digital innovation, and green finance; and (iii) spillover effects from global economic-financial shocks, such as geopolitical tensions, rising public debt, and uneven growth. These challenges underscored ASEAN’s need to address emerging digitalization-related risks while maintaining resilience to macroeconomic and external shocks. In this context, member countries reaffirmed their commitment to strengthening coordination, sharing experiences, and enhancing supervisory capacity to support financial sustainability and stability in the region.
The Deputy Governors agreed that in the face of numerous challenges, policy coordination, information sharing, and safeguarding financial system security are key to bolstering ASEAN’s resilience. Policy recommendations focused on strengthening risk surveillance capacity, advancing financial digitalization while narrowing digital divides, enhancing regional cooperation on cybersecurity, and maintaining flexible monetary-fiscal policies to ensure macroeconomic and financial stability.
A representative of the SBV speaks at the Meeting
The 31st SLC Meeting will be hosted by the Philippines' Central Bank, as the Philippines assumes the ASEAN Chairmanship in 2026. Delegates expressed their commitment to continued close coordination, ensuring timely progress on the AEC Strategic Plan 2026-2030 and Finance Sectoral Plan, while advancing practical cooperative initiatives in the period ahead.
HM