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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    © 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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