ADB and JFSA aim to connect global investors with Asia’s immense growth opportunities, creating a cycle of long-term capital. It will also promote Japan’s longstanding leadership in promoting financial stability and innovation in Asia, particularly through technology transfer and capacity-building initiatives.
The Asian Development Bank (ADB) and the Japan Financial Services Agency (JFSA) have signed an agreement to collaborate to develop the financial sector across Asia and the Pacific. This partnership aims to accelerate digital transformation and attract investment to support sustainable growth in the emerging economies.
ADB President Masato Kanda and JFSA Commissioner Yutaka formalised this during the Asia Day event at Japan Weeks 2025.
The new framework will focus on expanding financial inclusion through technology by promoting digital financial solutions that provide affordable services to unbanked and underbanked populations.
It will also concentrate on developing capital markets by improving financial market infrastructure, transparency, and investor confidence to attract long-term funds. It will enhance financial stability by enhancing regulatory frameworks to protect economies from external shocks.
ADB President Masato Kanda emphasized the need for more open trade and robust financial institutions to ensure regional economies benefit from increased growth and remain resilient to external shocks.
ADB and JFSA aim to connect global investors with Asia’s immense growth opportunities, creating a cycle of long-term capital.
It will also promote Japan’s longstanding leadership in promoting financial stability and innovation in Asia, particularly through technology transfer and capacity-building initiatives.
In his keynote address, Mr. Kanda highlighted the potential of Asia’s financial markets to have long-term prosperity. He noted that market-based financial accounts account for 14% of total corporate debt in Asia, compared to the higher contribution in advanced economies.
The limited dependence on market financing restricts growth and leaves many economies vulnerable to external financial shocks. Kanda suggested that many trillions of dollars might be received from global institutional investors, but it would require developing resilient and better-connected capital markets.
According to Kanda, strong capital markets are necessary to channel regional savings into local investments, thereby reducing dependence on foreign borrowing and investment for critical needs such as infrastructure, climate adaptation, and small business development. The ADB plays an important role in promoting regional integration throughout the Asia-Pacific.
Through its technical programs and connections with central banks and regulatory authorities, it can help countries develop their equity markets, invest in infrastructure and private sector growth, expand sustainable and green finance to provide capital for environmental and social goals, and support digital innovation and fintech solutions to reach underserved regions.
Mr. Kanda affirmed that ADB is committed to helping member countries transition towards diversified and more resilient financial systems capable of handling domestic and international capital.
Japan is one of the ADB member countries and the largest contributor. It has been doing initiatives to improve financial stability across Asia. JFSA has long played a leading role in creating a framework for fintech regulation and climate-related investments.
The partnership will support programs that leverage fintech to make sure marginalised groups gain access, while promoting climate-resilient investments related to the Paris Agreement and the Sustainable Development Goals. They aim to create a financial ecosystem that can withstand global shocks, trade challenges, and drive inclusive growth through their policy coordination and joint capacity building.
This collaboration comes at the right time as Asia is facing demographic shifts, climate risks, and the tight global financial conditions. Strengthening its financial sector will help to maintain its role as a global growth engine.
The partnership between ADB and JFSA, by strengthening its financial systems, will empower consumers, businesses, and governments. By building an inclusive, transparent, and resilient financial system, the deal will establish a new benchmark for economic cooperation in the Asia-Pacific, aligning financial innovation with both human development and environmental sustainability.
