1、 NewMonetaryOrderTHEThe State of Financial ServicesAsiaPerspectives Oliver Wyman1The New Monetary Order|Asia PerspectivesDear Reader,The monetary policy context for the global financial system since the GFC has been low or ultralow interest rates in most of the world,an expansion of central bank bal

2、ance sheets,and a significant program of regulatory reform.This period has reshaped the financial system in profound ways,in terms of liquidity and funding structures,capitalisation,the level of interest rate risk in the system,and the growth of different forms of credit.The period has also seen sig

3、nificant shifts in the roles of constituents in finance,with the growth of non-bank financial institutions,the rise of regional and domestic banks in some parts of the world,and the increasing challenges with cross-border and international banking.Yet what does the future hold?Whether or not you bel

4、ieve we have moved into a longer period of inflation taming,high interest rates and lower liquidity,it is clear that low-for-long is over and this represents a major paradigm shift which will undoubtedly also reshape the financial system in the coming years.Do we understand the possible scenarios be

5、fore us?Do we retain the expertise in the industry to manage through these scenarios after two decades of low-for-long?Who will the winners and losers be?In our State of Financial Services work this year on the New Monetary Order,we explore these questions.Our work will look at the dynamics of diffe

6、rent regions and segments in a series of papers and conclude with our global perspectives.Here is our Asia Perspectives paper on the New Monetary Order.We hope you enjoy the research.Sincerely,Ted Moynihan Managing Partner and Global Head of Financial Services Oliver Wyman2The New Monetary Order|Asi