From CMI To AMF

The Asian financial crisis of 1997 was followed by a flurry of reform for prudential regulation. The financial press has generally represented this as an adequate response to the meltdown of 1997. However, recent moves towards financial integration in Asia indicate that the destabilizing factors endemic within financial markets need to be resolved, but not just weaknesses of existing institutions. On the other hand, IMF didn't succeed in helping Asian countries get rid of the crisis, this is the direct reason brings CMI. Asian governments are also realizing that a regional arrangement may be more appropriate than existing international structures. For future crises to be averted, CMI came into existence in 2000.CMI agreed to provide additional short-term advances of hard currencies to countries facing the threat of liquidity shortfalls. Through a network of BSA and repurchase agreements, the desire is to establish a"firewall"against future financial crises. But it is not enough; we have to replace the bilateral mechanism with the AMF mechanism.In particular, the high risk of illiquidity in Asian financial systems requires an adequately resourced credit facility for the immediate provision of funds, to pre-empt currency runs and restore market confidence. While the movement for a new"international financial architecture"stalls, cooperative steps being taken in the region suggest that the creation of an AMF is the most promising and likely initiative to pre-empt future crises.We can attest AMF is feasible through researching the successful established cases. In the same time, because AMF is more familiar with the regional points of Asian, AMF can take effect easier than IMF in Asian. We learn from the successful experiences of function, framework and so on, and then we use the experiences to propose a useful program for AMF. After solving the above problems, we have our conclusion: Funding of AMF is a practical proposal, not just a dream of Asian people.