Asian Financial crises: Origins, implications and solutions

Books, January 16, 2001

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Asian Financial crises: Origins, implications and solutions

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Bibliographic details

• Published: January 16, 2001
• Series: Books
• DOI: https://doi.org/10.5089/9781451965476.071

Summary

• Paper analyzes the origins, implications, and solutions for the Asian financial crisis.
• Perspective: a member of the Executive Board of the IMF.
• Core critique: as Asian problems were building, the IMF overlooked weaknesses in bank and corporate balance sheets in much of Asia.

Key findings and observations

• The IMF was unaware of the extraordinary leverage of Korean companies, which in some cases reached a ratio of 600/1 debt to equity.
• The IMF did not focus on:
  • weak accounting and disclosure practices of banks and nonbanks, and
  • generous rollovers of banks to their key clients.

Subjects and keywords

• Subjects: Banking; Commercial banks; Currency crises; Financial crises; Financial institutions; Financial sector policy and analysis; Loans; Moral hazard.
• Keywords: Africa; Asia and Pacific; bank capital; bank depositor; BOOK; Caribbean; Commercial banks; Currency crises; East Asia; Global; IMF official; Loans; market participant; Moral hazard; South America; Southeast Asia; support package.