The Credit Crunch in East Asia: What can Bank Excess Liquid Assets Tell us?

Pierre-Richard Agénor (), Joshua Aizenman () and Alexander W. Hoffmaister ()

No 7951, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The paper proposes a two-step approach to assessing the extent to which the fall in credit in crisis-stricken East Asian countries was a supply- or demand-induced phenomenon. The first step is based on the estimation of a demand function for excess liquid assets by commercial banks. Such a function is derived analytically in the first part of the paper. The second step consists in establishing dynamic projections for the periods following the crisis and assessing whether or not residuals are large enough to be viewed as indicators of involuntary' accumulation of excess reserves. Results for Thailand indicate that the contraction in bank lending that accompanied the crisis was the result of supply factors.

JEL-codes: E42 F31 (search for similar items in EconPapers)
Date: Written
Note: IFM
View list of references View citations in EconPapers

Downloads: (external link)
http://www.nber.org/papers/w7951.pdf (application/pdf)
Access to the full text is generally limited to series subscribers, however if the top level domain of the client browser is in a developing country or transition economy free access is provided. More information about subscriptions and free access is available at http://www.nber.org/wwphelp.html.

Related works:
Working Paper: The credit crunch in East Asia: what can bank excess liquid assets tell us ? (2000)
Journal Article: The credit crunch in East Asia: what can bank excess liquid assets tell us? (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:nbr:nberwo:7951

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w7951
The price is Paper copy available by mail.

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc
Address: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Contact information at EDIRC.
Series data maintained by ().