Evolving Regional Financial Architecture in East Asia

Ten years have passed since the Asian financial crisis that devastated not only the currency values and the financial systems of Indonesia, the Republic of Korea, Malaysia, and Thailand, but also their overall economic activity, social conditions and, in some countries, political systems. Since the crisis, these economies have restored financial resilience through (i) financial sector restructuring and reforms aided by corporate debt resolution and the introduction of more effective insolvency procedures, (ii) reductions of short term external debt and accumulation of foreign exchange reserves, and (iii) adoption of greater flexibility of exchange rates among the crisis-affected economies. [Research Policy Brief 25] URL: [http://www.adbi.org/files/2008.01.rpb25.east.asia.regional.financial.architecture.pdf]