Capital Market Reform in Asia contains a selection of papers that capture the essence of capital market reform in the Asian region, including important lessons from the global financial crisis of 2007–2009. It points to the need for Asian economies to adapt their capital market development strategies to rebalance growth by increasing mobilization of Asian savings for Asian investment.
Capital Market Reform in Asia is derived from 11 round table conferences on Capital Market Reform in Asia, jointly organized by Asian Development Bank Institute (ADBI) and the Organization for Economic Co-operation and Development (OECD).
The volume charts the progress of capital market development in Asia after the 1997–1998 Asian financial crisis, providing insights into capital market reform and the new challenges that have arisen since the global financial crisis of 2007–2009, amidst reforms to the international financial architecture.
Chapter 6: Ten Years After: Implications of the Current Financial Market Turmoil*
Ten Years After: Implications of the Current Financial Market Turmoil*
The Asian crisis sparked off on July 2, 1997 when the Bank of Thailand floated the Thai baht, under the pressure of substantial and highly volatile capital flows. Few people would have predicted that almost exactly 10 years later, the whole world was engulfed in another financial crisis, except that this time it was triggered by the collapse of Lehman Brothers in September 2008 for excessive leverage in the form of derivatives.
The focus of this chapter is to briefly examine the actions taken by emerging Asia after the Asian crisis of 1997–98 in developing their capital markets and to assess whether Asian economies would be able ...