Policy paralysis
Article Abstract:
Thailand's efforts to restructure its financial system are being hindered by internal politics and resistance to foreign investment. At the centre of Thailand's financial problems is a weakened financial system that is over-exposed to offshore borrowing and unproductive lending. Some analysts say that the only solution to Thailand's problems is allowing foreign involvement in Thai banks, but there is growing intolerance in the sector to foreign investors, with Thailand's Securities Exchange Commission stating that the statutory 25% ceiling on foreign ownership will remain.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1997
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The bad-debt hangover
Article Abstract:
Japan's persistent banking crisis entered a new phase in early 1996 as banks began writing off their bad loans, and loans to non-bank affiliated companies began to loom as the next phase. Banks continue to hold real estate as collateral, exposing them to declines in real-estate prices, so more bankruptcies and a weaker economy could reinvigorate the problem. The overall crisis has underscored the power of the agricultural sector, general unaccountability and willingness to act, and the lack of the rule of law.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1996
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