Precarious Credit Equilibria: Reflections on the Asian Financial Crisis

  • Joseph R. Bisignano


This paper examines some of the origins of the current East Asian financial crisis. Its focus is on the role of moral hazard and the weakness of prudential regulation and supervision in countries following financial deregulation and capital flow liberalization. While major differences exist among the Asian countries currently in crises, there are important similarities between the micro-financial vulnerabilities which eventually led to earlier crises in Latin America, Japan, and the Nordic countries. These similarities are illustrated with reference to Korea, Sweden, and Chile.


Financial System Moral Hazard Credit Rationing Deposit Insurance Foreign Bank 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© Springer Science+Business Media New York 1999

Authors and Affiliations

  • Joseph R. Bisignano
    • 1
  1. 1.Bank for International SettlementsUSA

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