Lending Booms, Real Estate Bubbles and the Asian Crisis

Abdelhak Senhadji and Charles Collyns

No 2002/020, IMF Working Papers from International Monetary Fund

Abstract: This paper examines the link between lending booms, asset price cycles, and financial crises across East Asian countries. Both theoretical arguments and empirical evidence support a strong relationship between bank lending and asset price inflation, especially in the real estate market. While asset price bubbles were present in most Asian countries during the 1990s, their subsequent bust has affected countries quite differently. Some countries underwent severe exchange and financial crises, while others were able to weather the storm with much less damage. This experience underlines the importance of a strong bank regulatory system.

Keywords: WP; price index; property price; asset price bubbles; financial market; exchange market crisis; rate of return; Lending Booms; Real Estate Bubbles; Asia Crisis; property market; adverse selection; Land prices; Real estate prices; Asset prices; Asset bubbles; Credit; East Asia; Asia and Pacific (search for similar items in EconPapers)
Pages: 46
Date: 2002-02-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (72)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=15560 (application/pdf)

Related works:
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: https://EconPapers.repec.org/RePEc:imf:imfwpa:2002/020

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().