International Banking Risk Scoring During the Asian Debt and Banking Crisis
Curtin U Economics and Finance Working Paper No. 99-11
19 Pages Posted: 22 Aug 2001
Date Written: September 1999
The Asian crisis originated in Thailand and systematically spread to the Philippines, Indonesia, Malaysia and South Korea from mid 1997 to 2000. Some of the countries concerned, such and Malaysia and Thailand, have somewhat recovered but others such as South Korea and Indonesia continue to experience major economic problems which are largely related to weaknesses in their banking systems.
This paper demonstrates that risk ratings of banks in the Asian region may be partly estimated by analysing short-term external debt data with a bank size factor included.
It is conjectured that the economic health of these countries will be returned if reforms are taken to ensure the long-term health of banking systems in the countries concerned.
Keywords: International Banking Risk, risk scores, external debt, bank size
JEL Classification: G15, G21
Suggested Citation: Suggested Citation