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Gauging Procyclicality and Financial Vulnerability in Asia through the BIS Banking and Financial Statistics

In: THE ASIAN MONETARY POLICY FORUM Insights for Central Banking

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Listed:
  • Stefan Avdjiev
  • Bat-el Berger
  • Hyun Song Shin

Abstract

We look back at past episodes of financial stress in Asia with a forward-looking perspective. We put ourselves in the shoes of a contemporary observer with the data at hand and ask what evidence was available on the systematic build-up of vulnerabilities. We reconstruct a graphical narrative of banking and financial developments at the time. Our exercise aims to showcase the usefulness of the BIS international banking and financial statistics as a window on the financial system’s procyclicality. We conclude with a real-time forward-looking exercise on financial vulnerabilities, focusing on the implications of the shift in the pattern of credit intermediation from banks to bond markets.

Suggested Citation

  • Stefan Avdjiev & Bat-el Berger & Hyun Song Shin, 2021. "Gauging Procyclicality and Financial Vulnerability in Asia through the BIS Banking and Financial Statistics," World Scientific Book Chapters, in: Steven J Davis & Edward S Robinson & Bernard Yeung (ed.), THE ASIAN MONETARY POLICY FORUM Insights for Central Banking, chapter 6, pages 224-262, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789811238628_0006
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