HONG KONG. Aug 7: A senior official of investment bank Morgan Stanley Dean Witter has described financial reform in Asia as a revolution and says it is bound to take time, says Reuters.

Harrison Young, vice chairman at Morgan Stanley Dean Witter Asia, said foot-dragging on allowing foreign purchases of Asian banks was regrettable but should come as no great surprise.

"The restructuring going on right now in some Asian economies could be described as revolutionary, and revolution always disturbs vested interests," Young said.

Slowing reform efforts in South Korea grabbed the spotlight . last week after Hanvit Bank's 00030.KS decision on Friday, to shelve a $1 billion issue of global depository receipts. and the collapse of Daewoo Group DWGR.CN-under a mountain of bad debt.

Morgan Stanley Dean Witter Asia is involved in bank privatisations in Japan. South Korea and Thailand, and is also advising several Aslan governments. But Young declined to discuss any specific deal involving Morgan Stanley.

Young said all Asian nations were making progress on reforms demanded by the International Monetary Fund and Western investors, but the challenge should not be underestimated.

"All these countries are making progress but this is a change in the whole fabric of the way things work." Young said..

Changing Asia’s centrally planned economies into more market-driven systems will involve a power struggle as vested interests vigorously resist the loss of their authority., often citing sovereignty issues associated with foreign bank ownership.