Information about Asia and the Pacific Asia y el Pacífico
Front Matter

Front Matter

Author(s):
Leslie Teo, Charles Enoch, Carl-Johan Lindgren, Tomás Baliño, Anne Gulde, and Marc Quintyn
Published Date:
January 2000
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Information about Asia and the Pacific Asia y el Pacífico
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© 1999 International Monetary Fund

Production: IMF Graphics Section

Typesetting: Joseph Ashok Kumar

Figures: In-Ok Yoon

Library of Congress Cataloging-in-Publication Data

Financial sector crisis and restructuring : lessons from Asia / Carl-Johan Lindgren… [et al.].

p. cm. — (Occasional paper: 188)

Includes bibliographical references.

ISBN 1-55775-871-9

1. Finance—Asia—Case studies. 2. Financial crises—Asia—Case studies. I. Lindgren, Carl-Johan II. Occasional paper (International Monetary Fund); 188.

HC187.A2 F57 1999

332’.095—dc21

99-088474

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Contents

The following symbols have been used throughout this paper:

  • … to indicate that data are not available;
  • — to indicate that the figure is zero or less than half the final digit shown, or that the item does not exist;
  • - between years or months (e.g., 1994–95 or January-June) to indicate the years or months covered, including the beginning and ending years or months;
  • / between years (e.g., 1994/95) to indicate a fiscal (financial) year.

“Billion” means a thousand million.

Minor discrepancies between constituent figures and totals are due to rounding.

The term “country,” as used in this paper, does not in all cases refer to a territorial entity that is a state as understood by international law and practice; the term also covers some territorial entities that are not states, but for which statistical data are maintained and provided internationally on a separate and independent basis.

Preface

This paper reviews the policy responses of Indonesia, Korea, and Thailand to the Asian crisis that erupted in 1997 and compares the actions of these three countries with those of Malaysia and the Philippines, which were buffeted by the crisis. Although work is still under way in all the affected countries, and thus any judgments are necessarily tentative, important lessons can be learned from the various experiences of the last two years.

The paper reflects these lessons and the emerging policies of the IMF’s Monetary and Exchange Affairs Department (MAE). The material in this paper was originally prepared for discussion in the IMF’s Executive Board in early September 1999. It was prepared under the direction of Stefan Ingves, Director of MAE, by a staff team led by Carl-Johan Lindgren and consisting of Tomás J.T. Baliño and Charles Enoch (who have been leading the department’s work in Thailand, Korea, and Indonesia, respectively), Anne-Marie Gulde, Marc Quintyn, and Leslie Teo. Elena Budreckaite and Kiran Sastry provided research assistance, and Charmane Ahmed and Janet Stanford secretarial support. Jeff Hayden of the External Relations Department edited the report and coordinated its publication. The team benefited from contributions of numerous other MAE staff members involved in the department’s work in the five countries, as is acknowledged in Appendices IV. The paper thus reflects the hands-on experience of the MAE staff and experts involved.

The paper has also benefited from comments of the IMF’s Executive Directors, colleagues in MAE, the Asia and Pacific Department (APD), and other departments in the IMF, as well as from colleagues in the World Bank. The views expressed in the paper are those of the IMF staff and do not necessarily reflect the views of the national authorities or IMF Executive Directors.

List of Abbreviations

ADB

Asian Development Bank

BAFIA

Banking and Financial Institutions Act (Malaysia)

BAP

Bankers Association of the Philippines

BAPINDO

Bank Pembangunan Indonesia

BBC

Bangkok Bank of Commerce

BCA

Bank Central Asia (Indonesia)

BDNI

Bank Dagang Nasional Indonesia

BIBF

Bangkok International Banking Facilities

BLR

Base lending rate (Malaysia)

BMB

Bangkok Metropolitan Bank (Thailand)

BNI

Bank Negara Indonesia

BRI

Bank Rakyat Indonesia

BTN

Bank Talringhan Nasional (Indonesia)

CAMEL

Capital, asset, management, equity, liquidity

CDRC

Corporate Debt Restructuring Committee (Malaysia)

CRA

Corporate Restructuring Agreement (Korea)

CRCC

Corporate Restructuring Coordinating Committee (Korea)

DBP

Development Bank of the Philippines

FIDF

Financial Institutions Development Fund (Thailand)

FRAC

Financial Restructuring Advisory Committee (Thailand)

FRA

Financial Sector Restructuring Agency (Thailand)

FSC

Financial Supervisory Commission (Korea)

FSS

Financial Supervisory Service (Korea)

IBRA

Indonesian Bank Restructuring Agency

KAMCO

Korean Asset Management Corporation

KDB

Korean Development Bank

KDIC

Korea Deposit Insurance Corporation

KEXIM

Korea Export-Import Bank

KTB

Krung Thai Bank (Thailand)

KTT

Krung Thai Thanakit (Thailand)

NIF

National Investment Fund (Korea)

PDIC

Philippine Deposit Insurance Corporation

SEC

Securities and Exchange Commission

SCR

Steering Committee on Restructuring (Malaysia)

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