Group members:

1

KHONG SIAU SAN BG09110137

ANG PEI CHII BG09110321

WANG XIN BG09170437

YIN YE BG09170471

PAN YING BG09170472

QIN YIWEN BG09170446

Group name: LI NA (HE20)

Current Global Financial Crisis & Its

Implication on International Financial

Institutions:

The Case of Asian Region

2

1. To understanding the knowledge of current global financial

crisis

2. To know how current global financial crisis implicated on

international financial institutions in Asian Region

3. To identify the impact of current global financial crisis on

international financial institutions in Asian Region

4. To analysis the Asian Region’s responses for the current global

financial crisis

3

Subprime mortgage loan, higher interest rate.

Banks lowered the level of qualification.

Loan more but income remains the same.

Banks sell mortgage-backed securities to financial institutions.

Households unable to repay loan, house value decrease.

Crisis happened.

4

Currency and maturity mismatched in private balance

sheets

Credit and asset bubbles and excessive investment in

property and other sectors

Unsustainable currency appreciations and external

deficits

Lack of self-insurance against a sudden reversal of

capital flows, and excessive reliance on outside help

and policy advice

5

East Asian

China, Japan, North & South Korea, Hong Kong

South Asian

India, Pakistan

West Asian

Israel, Saudi Arabia, Turkey

Southeast Asia

Indonesia, Malaysia, Philippines, Thailand, Singapore

6

East Asian

Japan

• Major financial institutions’ net profit fall by 40%

China

• Mostly unscathed in the short run

• Marginal/ no impact because of the “decoupling”

effects and efficient market reforms

Korea

• Suffering from massive financial deleveraging by

foreign investors

• Highly joined by household debt

7

Hong Kong

• Heavily impacted on banks’ income statements

• Pre-tax profits deteriorated

South Asian

Pakistan

• Rupee value depreciated

• Experience significant deterioration

India

• Almost negligible

8

West Asian

Saudi Arabia

• Shortage of dollar liquidity

Turkey & Israel

• No effected

Southeast Asia

Malaysia

• Portfolio investment outflows

Indonesia

• Balance of payments in deficit

Philippine & Thailand

• No effected

9

Joined the world community – G20

Adopted specific macro-prudential or capital control

measures

ASEAN Finance Ministers maintaining sound fiscal

and monetary policies

ASEAN+3 Finance Ministers established the Credit

Guarantee and Investment Facility (CGIF)

10

11