1. Group name: LI NA (HE20)
Group members:
KHONG SIAU SAN BG09110137
ANG PEI CHII BG09110321
WANG XIN BG09170437
YIN YE BG09170471
PAN YING BG09170472
QIN YIWEN BG09170446
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2. Current Global Financial Crisis & Its
Implication on International Financial
Institutions:
The Case of Asian Region
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3. 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
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4.  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.
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5.  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
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6.  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
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7. 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
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8.  Hong Kong
• Heavily impacted on banks’ income statements
• Pre-tax profits deteriorated
South Asian
 Pakistan
• Rupee value depreciated
• Experience significant deterioration
 India
• Almost negligible
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9. 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
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10.  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)
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