This paper analyzes the effects of the trade and financial networks on the propagation of the global financial crisis of 2008. We adopt a new methodology that incorporates a dynamic network approach into econometric analysis. Some interesting results are obtained. Firstly, both the trade and...

Financial Market Infrastructures (FMIs) play a critical role in the financial system and the broader economy by facilitating the clearing, settlement and recording of monetary and other financial transactions and thereby maintaining and promoting financial stability and economic growth. However,...

There is a growing concern over the rapid increase in mortgage loans and consumer credit of households in SEACEN economies in recent years. Rising household credit has important implications for the economy. Periods of excessive credit growth has often been linked with episodes of financial and...

Countercyclical capital buffer (CCCB) has been incorporated in the Basel III framework with the aim of ensuring that banking sector capital requirements take account of the macro-financial environment in which banks operate. It is likely to address pro-cyclicality in the banking business and its...

The role of international banking and lending to the emerging markets has been long debated. To date, the balance of evidence supports the view that foreign bank entry into the domestic banking system has been largely a positive one. The liberalisation of local banking systems and the presence...

This paper attempts to examine the real sector propagation of the recent global financial crisis in the SEACEN economies. This is of particular interest as SEACEN economies are known for their trade-oriented nature. In particular, during the subprime crisis, weak demand, particularly in...

Although global financial stability in late 2010 and early 2011 has, in general, improved when compared to the 2008-2009 period of the sub-prime global financial crisis, vulnerabilities remain high. The recent World Economic Outlook of the IMF (WEO, September 2011) underlines the two speed...

This study attempts to review policy options available for the authorities and examine their relative effectiveness in SEACEN member economies during the recent global financial crisis. During normal times, authorities often have space and flexibility to use policies impacting macroeconomic...

This study gives a preliminary assessment of the macroeconomic impact of implementing Basel III in Malaysia. This is also an attempt to contribute to the increasing studies for emerging economies, especially focusing on SEACEN members. The Basel III standards seek to significantly increase the...