Financial system nears paralysis with sinking Rupiah

Article Abstract:

The collapse of Indonesia's financial system draws near, as the country's currency devaluated by as much as 32% in Jan 1998, causing stock exchange to dwindle by 4.8%. The financial crisis has severely affected the banking industry, which is recently threatened by the imposition of government moratorium for incurring foreign debts amounting to $65 billion. Some of the measures eyed by the government and bank owners to address the issue includes curbing out foreign-debt-repayments, restraining capital flows and limiting the rupiah's trading.

Indonesia, Currency devaluation, Devaluation (Currency)

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Hong Kong's banking sector remains cushioned against the region's recent financial downturn

Article Abstract:

Hong Kong's banking industry remain secure, particularly as opposed to other banking sectors in the region. Hong Kong's banks are healthy enough to endure the Asian economic turmoil and its consequence. However, the banking industry is facing liquidity difficulties as Japanese and other foreign institutions have started to withdraw their credit lines. Declining property prices, abundant high-profile bankruptcies and soaring unemployment will further challenge the banks.

Column, Hong Kong

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Banking overhaul urged

Article Abstract:

Asian countries must be able to improve and restructure their banking systems in order to maintain their status as one of the rapidly developing regions in the world, according to the World Bank. Analysts believe that the current financial crisis is brought about by massive credit growth and stock market turmoil. However, World Bank officials have expressed optimism that Asian governments are capable of addressing the problem.

Economic policy, World Bank, Asia

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