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Banks, the IMF, and the Asian Crisis

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  • Banks, the IMF, and the Asian Crisis
  • Kho, Bong-Chan; Stulz, Rene M.
  • National Bureau of Economic Research


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Title Banks, the IMF, and the Asian Crisis
Similar Titles
Material Type Reports
Author(English)

Kho, Bong-Chan; Stulz, Rene M.

Publisher

Cambridge:National Bureau of Economic Research

Date 1999-09
Series Title; No NBER Working Paper Series / 7361
Pages 44
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Original Format pdf
Subject Economy < Financial Policy
Holding National Bureau of Economic Research

Abstract

This paper examines the impact of the Asian crisis on bank stocks across four Western countries and six Asian countries. In the second half of 1997, Western banks experienced positive returns. In contrast East Asian bank indices incurred losses in excess of 60% in each of the crisis countries. Most of this poor performance is explained by the exposure of the banks to general stock market movements in their countries. Currency exposures affected banks adversely beyond their stock market impact only in Indonesia and the Philippines. Except for the Korean program, IMF programs had little effect on bank values. The announcement of the Korean program increased shareholder wealth at the U.S. banks with the highest reported exposure in Korea by about 7% and had a favorable effect on bank shareholder wealth in all the countries in our sample but one. (The rest omitted)