Banking crisis in east asia: A micro/macro perspective

Suetorsak, Rungrudee

doi:10.1007/s11156-006-7432-4

Cited by 10 publications

(4 citation statements)

References 37 publications

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“…Suetorsak (2006), by studying a number of East Asia countries indicates that monetary policies impact the micro-economic decision making of banks. Another interesting study, by Hachicha and Lee (2009), shows that the transmission of monetary policy through the interest rate channel has become weak in the short run but more important in the long run, in Egypt.…”

Section: Literature Reviewmentioning

confidence: 99%

Banks’ lending behavior and monetary policy: evidence from Sweden

Papadamou

Siriopoulos

2010

Rev Quant Finan Acc

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The main purpose of this paper is to investigate the aggregate data about bank loans which may hide significant information about the monetary transmission mechanism. This study, by disaggregating bank loans data and using the relevant interest rates in Sweden, investigates the behaviour of banks after a monetary policy tightening. By using an unrestricted VAR model and impulse response analysis, our results show that a shock on the policy rate affects the main components of the banks' loan portfolios differently. Initially, banks do not reduce lending to firms and households and they present a sluggish reaction concerning the relevant interest rates. On the contrary, they reduce lending to mortgage credit institutions significantly since real estate lending can be considered as a risky long-term investment. Moreover mortgage credit institutions reduce lending for housing purposes to non-bank public. This reduction is mainly driven by flexible rate loans and loans secured on tenant owned apartments. Consequently, theses actions have a significant effect on real economic activity, by amplifying the initial shock from the tightening monetary policy. The latter result provides evidence of the bank lending channel in Sweden working via mortgage lending and could be very important for policy makers.

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Section: Literature Reviewmentioning

confidence: 99%

Banks’ lending behavior and monetary policy: evidence from Sweden

Papadamou

Siriopoulos

2010

Rev Quant Finan Acc

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“…Rather, banks' borrowing from both offshore and onshore became an important focus of financing in East Asia (Suetorsak, 2006). A huge accumulation of foreign debt financing relative to equity increasingly raised banks' leverage risk.…”

Section: The Asian Financial Crisis In Perspectivementioning

confidence: 99%

“…Due to less than fully developed stock markets in the East Asian region, equity financing was not an important source of financing. Rather, banks’ borrowing from both offshore and onshore became an important focus of financing in East Asia (Suetorsak, 2006). A huge accumulation of foreign debt financing relative to equity increasingly raised banks’ leverage risk.…”

Section: The Asian Financial Crisis In Perspectivementioning

confidence: 99%

Financial Crisis, Exchange Rate Regimes, Organizational Forms, and Bank Efficiency: Does Globalization Matter?

Sufian

2016

Emerging Economy Studies

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The article provides new empirical evidence on the impact of economic globalization on the efficiency of the banking sector. The analysis is confined into two stages. In the first stage, we employ the bias corrected data envelopment analysis method to compute the efficiency of individual banks during the period 1999-2008. We then use bootstrap regressions to examine the impact of economic globalization on bank efficiency, while controlling for the potential impacts of contextual variables. The empirical findings indicate that liberalization (restrictions) of the trade and capital account exerts positive (negative) influence on the efficiency of Malaysian banks. Likewise, the impacts of better personal contacts and information flows seem to work in favor of Malaysian banks' efficiency. The empirical findings also bring forth the importance of cultural proximity in determining the efficiency of banks operating in the Malaysian banking sector.

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“…cases like during the 1990's Bank crisis in Asia, that the macroeconomic policies impacted the microeconomic decisions and the Banks themselves (Suetorsak, 2006).…”

Section: Introductionmentioning

confidence: 99%