Emerging East Asian Banking Systems Ten Years after the 1997/98 Crisis

Charles Adams
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Charles Adams: National University of Singapore

No 16, Working Papers on Regional Economic Integration from Asian Development Bank

Abstract: This paper looks at the development of the banking sector in emerging East Asia in the 10 years since the financial crisis of 1997/98. It suggests that the health of banking sectors in the region has improved substantially, with key changes including increased foreign ownership, movement into new business lines, greater transparency, and shifts toward household and real estate lending. In addition, supervisory and regulatory systems have been upgraded and have become more forward looking and risk based. However, it notes that major credit rating agencies continue to maintain relatively low ratings for many banks in the region, bank share prices have generally underperformed the market, and significant differences persist in the health of the region's banking systems. In addition, bank lending to private business has been weak across much of the region. Restructuring and reform are ongoing processes and will need to continue not only where further rehabilitation from the effects of the 1997/98 crisis is still required, but in other economies as well.

Keywords: Financial crisis; restructuring and reform; credit rating; Basel core principles. (search for similar items in EconPapers)
JEL-codes: G21 G24 G28 G32 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2008-05-01
New Economics Papers: this item is included in nep-ban, nep-reg, nep-rmg and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

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Persistent link: https://EconPapers.repec.org/RePEc:ris:adbrei:0016

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