The document summarizes the 1997 Asian Financial Crisis. It began in Thailand when the Thai baht plunged in value, then spread to other Southeast Asian countries. Currency values, stock markets, and asset prices collapsed in Thailand, Singapore, South Korea, Malaysia, and the Philippines. The crisis was caused by rapid growth fueled by exports and foreign investment, which led to huge capital inflows and overexpansion in Thailand's banking sector into non-productive assets and real estate. This created a debt burden and non-performing loans that caused the financial collapse when asset prices fell.

1. SOUTH EAST ASIAN
CRISIS

2. South-East Asian countries composed of -
⮚ BRUNEI
⮚ BURMA (MYANMAR)
⮚ CAMBODIA
⮚ TIMOR-LESTE
⮚ INDONESIA
⮚ LAOS
⮚ MALAYSIA
⮚ PHILIPPINES
⮚ SINGAPORE
⮚ THAILAND
⮚ VIETNAM
SOUTH-EAST ASIAN COUNTRIES

3. SOUTH-EAST ASIAN CRISIS
 The Asian Financial Crisis is a crisis caused by the collapse of the
currency exchange rate and hot money bubble.
 The financial crisis started in Thailand in July 1997 after the Thai baht
plunged in value. It then swept over East and Southeast Asia.
 As a result of the financial crisis, currency values, stock markets, and
other asset values in many Southeast Asian countries collapsed.
 Thailand, Singapore, South Korea, Malaysia, Philippines, Indonesia

5. MOST AFFECTED COUNTRIES

6.  Massive economic growth of many South-East Asian countries.
 Export growth and Foreign investments mainly boosted the economic
development.
 The crisis started in Thailand with the financial collapse of Thai Baht.
 Due to huge overflow of capital,banking sector has expanded very
rapidly in Thailand.
 Investments made to non productive assets.
 Huge debt burden to Thailand government.
CAUSES OF FINANCIAL CRISIS

7.  NPA has been created by Thai Banks by providing loans to non
productive assets.
 Demand in Real Estate suddenly fell down.
 Banking Sector has been collapsed in Thailand.

9. EFFECTS OF CRISIS
● The countries that were most severely affected by the Asian Financial Crisis
included Indonesia, Thailand, Malaysia, South Korea, and the Philippines.
● Besides its economic impact, the Asian Financial Crisis also resulted in
political repercussions.
● The impact of the Asian Financial Crisis was not limited to Asia.
International investors became less willing to invest in and lend to
developing countries, not only in Asia in other areas of the world. Oil prices
also fell due to the crisis. As a result, some major mergers and acquisitions
in the oil industry took place to achieve economies of scale.

10. CONCLUSION
● From the financial crisis was to build up their foreign exchange reserves to
hedge against external shocks. Many Asian countries weakened their
currencies and adjusted economic structures to create a current account
surplus. The surplus can boost their foreign exchange reserves.
● The Asian Financial Crisis also raised concerns about the role that a
government should play in the market. Supporters of neoliberalism promote
free-market capitalism. They considered the crisis as a result of government
intervention and crony capitalism.
● The conditions that IMF set within their structural-adjustment packages also
aimed to weaken the relationship between the government and capital market
in the affected countries, and thus to promote the neoliberal model.

11. THANK YOU