Impact of the Global Crisison Banking Sector Soundness in Asian Low-Income Countries

May 1, 2011

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Format: Chicago

Impact of the Global Crisison Banking Sector Soundness in Asian Low-Income Countries, (USA: International Monetary Fund, 2011) accessed September 27, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The paper takes stock of the impact of the global financial crisis that began in late 2007 on banking sectors of Asian low-income countries, by exploring bank-level data provided by Bankscope. The paper examines three key channels of possible crisis spillovers: exposures to (i) valuation changes of mark-to-market financial assets, (ii) a drop in crossborder funding, and (iii) rises in NPLs prompted by international real economic linkages. The paper finds that despite relatively low financial integration, the impact of the crisis on LIC banks, particularly the largest ones, were not insignificant. Impacts were most palpable through a loan-to-crossborder funding nexus.

Subject: Asset and liability management, Balance of payments, Bank credit, Banking, Capital flows, Financial institutions, Financial statements, Liquidity, Loans, Money, Nonperforming loans

Keywords: Asia, Asian LIC, Balance sheet linkage, Bank, Bank credit, Capital flows, EME bank, Global, Lending growth, Lending growth regression, LIC bank, Liquidity, Loans, Low-income countries, MTM gain, MTM gains/losses, Nonperforming loans, NPL, WP

Publication Details

Pages:

34
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2011/115
Stock No:

WPIEA2011115
ISBN:

9781455262380
ISSN:

1018-5941

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