The malignancy of the Asian crisis comes from its characteristics as twin financial crises: currency crisis (external) and banking crisis (internal). It is a capitalaccount crisis combined with domestic credit contraction, as distinct from the traditional current-account crisis. The new nature...

Since the Asian financial crisis, strong and increasingly prevalent views have emerged thatbanks are no more functional and that economic development should rely on capital markets. Suchviews claim that the Asian crisis was caused by heavy dependence of firms’ investment on bank loansand that...

The authors question the significance of the role of moral hazard in the international financial dimension of the Asian crises. They propose an alternative explanation using a testable model and based on results from a qualitative questionnaire of banks. It is more likely that herd behavior and...

By examining Singapore’s successful experience, this paper identifies policies and factors that can avoid or mitigate the borrowing dilemma of double mismatches of currency and maturity. The authors conclude that there are common core principles that could be adopted by other emerging...

What is the relative contribution of sovereign risks and firm-level credit risks in a firm’srating assignment? Or, stated otherwise, what is the information content of these components in afirm’s rating? This paper intends to examine this issue, which has not been adequately addressed so...