Under the Japanese "main bank" relationship, an individual bank holds equity in a firm and plays a leading role in a firm decision-making and financing. This may leave a firm dependent on its main bank for financing due to the information advantage it enjoys over other potential leaders. While...

This paper analyzes the role of money, credit, trade and competitiveness variables in signaling currency crises in a sample of East Asian and Latin American countries over the period 1972:01-1997:10. Bivariate tests suggest that money and credit, as well as trade and competitiveness variables,...

A large literature on the appropriate sequencing of financial liberalization suggests that removing capital controls prematurely may contribute to currency instability. This paper investigates whether legal restrictions on international capital flows are associated with grated currency stability.

Renewed interest in the issue of appropriate exchange rate arrangements, particularly for developing countries, has been prompted by the general increase in global capital modility and the currency and payments crises of the 1990s. Three propositions are currently heard as prescriptions...

A sticky price monetary model (Frankel, 1979) of exchange rates is applied to quarterly data on seven currencies: the Indonesian rupiah, Korean won, Malaysian ringgit, Philippine peso, Singapore dollar, Taiwanese dollar and the Thai baht. The model proves empirically unsuccessful, except in the...

The purpose of this paper is to examine Korean banks' responses to the Basle risk-weighted capital adequacy requirements implemented in 1993. The analysis indicates that while some cosmetic adjustementd might have been made by partial recognition of unrealized stock losses and expected loan...

As memories of the East Asian crises of 1997-1998 recede, attention has shifted back to the traditional problems of macroeconomic management in a small open economy. A key question, in this regard, is the appropriate choice of exchange rate regime. While the East Asian crises cased some...

This paper reviews how the changing financial environment in Korea has affected the conduct of monetary policy and examines the extent to which the Bank of Korea now uses the short-term interest rate rather than money aggregates as an operating target. Empirical results from estimation of...

This paper compares the performance of a convoy banking system, similar to that which prevailed in Japan, to a fixed-premium deposit insurance regime. Under this system, failed banks are merged with healthy banks, rather than closed, so that the banking system itself provides the safety net for...

This paper examines the evidence in bank equity markets concerning bank regulatory policies in japan over the turbulent 1995-1998 period.