Impact of the Global Crisison Banking Sector Soundness in Asian Low-Income Countries

Author/Editor:

International Monetary Fund

Publication Date:

May 1, 2011

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

The paper takes stock of the impact of the global financial crisis that began in late 2007 on banking sectors of Asian low-income countries, by exploring bank-level data provided by Bankscope. The paper examines three key channels of possible crisis spillovers: exposures to (i) valuation changes of mark-to-market financial assets, (ii) a drop in crossborder funding, and (iii) rises in NPLs prompted by international real economic linkages. The paper finds that despite relatively low financial integration, the impact of the crisis on LIC banks, particularly the largest ones, were not insignificant. Impacts were most palpable through a loan-to-crossborder funding nexus.

Series:

Working Paper No. 11/115

Subject:

Frequency:

Annually

English

Publication Date:

May 1, 2011

ISBN/ISSN:

9781455262380/1018-5941

Stock No:

WPIEA2011115

Format:

Paper

Pages:

34

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