Gauging Procyclicality and Financial Vulnerability in Asia Through the BIS Banking and Financial Statistics

35 Pages Posted: 25 Jul 2018

See all articles by Stefan Avdjiev

Stefan Avdjiev

Bank for International Settlements (BIS)

Bat-el Berger

Bank for International Settlements (BIS)

Hyun Song Shin

Bank for International Settlements (BIS)

Date Written: July 2018

Abstract

We look back at past episodes of financial stress in Asia with a forward-looking perspective. We put ourselves in the shoes of a contemporary observer with the data at hand and ask what evidence was available on the systematic build-up of vulnerabilities. We reconstruct a graphical narrative of banking and financial developments at the time. Our exercise showcases the usefulness of the BIS international banking and financial statistics as a window on the financial system’s procyclicality. We conclude with a real-time forward-looking survey of current financial vulnerabilities, focusing on the implications of the shift in the pattern of credit intermediation from banks to bond markets.

Keywords: Asian Financial Crisis, international bank lending, procyclicality, financial stability

JEL Classification: F32, F34, G01

Suggested Citation

Avdjiev, Stefan and Berger, Bat-el and Shin, Hyun Song, Gauging Procyclicality and Financial Vulnerability in Asia Through the BIS Banking and Financial Statistics (July 2018). BIS Working Paper No. 735. Available at SSRN: https://ssrn.com/abstract=3219570

Stefan Avdjiev (Contact Author)

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland

Bat-el Berger

Bank for International Settlements (BIS)

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland

Hyun Song Shin

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland

HOME PAGE: http://www.bis.org/author/hyun_song_shin.htm

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