Lending Booms, Real Estate Bubbles and The Asian Crisis, Issues 2002-2020
International Monetary Fund, Feb 1, 2002 - Financial crises - 45 pages
This paper examines the link between lending booms, asset price cycles, and financial crises across East Asian countries. Both theoretical arguments and empirical evidence support a strong relationship between bank lending and asset price inflation, especially in the real estate market. While asset price bubbles were present in most Asian countries during the 1990s, their subsequent bust has affected countries quite differently. Some countries underwent severe exchange and financial crises, while others were able to weather the storm with much less damage. This experience underlines the importance of a strong bank regulatory system.
What people are saying - Write a review
We haven't found any reviews in the usual places.
Other editions - View all
50 percent adverse selection Asian crisis Asian experience asset price bubbles asset price cycles asset price inflation Aug 98 Aug bank lending banking systems booms and busts build-up collateral correlation Credit annual growth credit assessment credit channel credit cycles crises cycles in East Domestic Credit annual dummy variable East Asian countries economies equation exchange rate Figure Finance CEIC growth rate HKSE Hong Kong SAR House Price Index impulse response Index CEIC Indonesia Korea Malaysia interest rates investors KLSE moral hazard non-performing loans P/E ratio percent change Philippines policy lessons procyclical Properties CEIC property market property price bubble property price index property price inflation Property Returns annual property sector Real Domestic Credit real estate cycles real estate market real estate prices real estate sector Real Property Returns response of property Selected Asian Countries Singapore Taiwan POC stock market index stock prices Thailand yl yl