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Banking crisis in east asia: A micro/macro perspective

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  • Rungrudee Suetorsak

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    Abstract

    This paper examines interactions between micro and macro variables in explaining the risk positions adopted by East Asian banks. The analysis shows that macroeconomic policies impacted the micro-economic decision making of banks in the period from 1989 to 1999. Considering the macroeconomic perspective side by side with the microeconomic perspective and including interactions between the two levels increases the explanatory power of the model and exposes ways in which macro conditions and government policies influenced banks’ reactions to their microeconomic variables and the level of risk they take. Copyright Springer Science + Business Media, Inc. 2006

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    File URL: http://hdl.handle.net/10.1007/s11156-006-7432-4
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    Bibliographic Info

    Article provided by Springer in its journal Review of Quantitative Finance and Accounting.

    Volume (Year): 26 (2006)
    Issue (Month): 3 (May)
    Pages: 219-248

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    Handle: RePEc:kap:rqfnac:v:26:y:2006:i:3:p:219-248

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    Web page: http://springerlink.metapress.com/link.asp?id=102990

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    1. Kaminsky, Graciela & Lizondo, Saul & Reinhart, Carmen M., 1997. "Leading indicators of currency crises," Policy Research Working Paper Series 1852, The World Bank.
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    8. repec:fth:inadeb:318 is not listed on IDEAS
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    14. Mishkin, Frederic S., 1999. "Lessons from the Asian crisis," Journal of International Money and Finance, Elsevier, vol. 18(4), pages 709-723, August.
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    18. Menzie D. Chinn, 1998. "Before the Fall: Were East Asian Currencies Overvalued?," NBER Working Papers 6491, National Bureau of Economic Research, Inc.
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    21. Brenda González-Hermosillo, 1999. "Determinants of Ex-Ante Banking System Distress: A Macro-Micro Empirical Exploration of Some Recent Episodes," IMF Working Papers 99/33, International Monetary Fund.
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    25. Maurice Obstfeld, 1994. "The Logic of Currency Crises," NBER Working Papers 4640, National Bureau of Economic Research, Inc.
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    Cited by:
    1. Sufian, Fadzlan, 2009. "Determinants of bank efficiency during unstable macroeconomic environment: Empirical evidence from Malaysia," Research in International Business and Finance, Elsevier, vol. 23(1), pages 54-77, January.

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