IDEAS home Printed from https://ideas.repec.org/p/unt/pbmpdd/pb37.html
   My bibliography  Save this paper

Household and corporate leverage – where do the risks lie and how do we manage?

Author

Listed:
  • Daniel Jeongdae Lee

    (Macroeconomic Policy and Financing for Development Division, ESCAP)

Abstract

In the past decade, the Asia-Pacific region’s financial landscape became more diversified, with households having better access to personal loans and mortgages and corporates able to issue bonds, including in offshore markets, and thereby rely relatively less on bank loans. However, as debt levels increased, borrowers’ ability to repay became more sensitive to drops in earnings and shifts in interest rate and exchange rate. Historically, episodes of rapid credit growth were almost always followed by a banking crisis, as in the case of the Asian financial crisis of 1997. While the region’s financial system today is much stronger and backed by sizeable official reserves, household and corporate leverage has become a key risk factor to the region’s economic outlook and financial stability.

Suggested Citation

  • Daniel Jeongdae Lee, 2016. "Household and corporate leverage – where do the risks lie and how do we manage?," MPDD Policy Briefs PB37, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    • Handle: RePEc:unt:pbmpdd:pb37
    as

    Download full text from publisher

    File URL: http://www.unescap.org/sites/default/files/MPFD%20Policy%20Brief-Household%20and%20corporate%20leverage.pdf
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:unt:pbmpdd:pb37. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Macroeconomic Policy and Development Division, ESCAP (email available below). General contact details of provider: https://edirc.repec.org/data/escapth.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.