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  1. 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 BG091704461
  2. 2. Current Global Financial Crisis & Its Implication on International Financial Institutions: The Case of Asian Region2
  3. 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 crisis3
  4. 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.4
  5. 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 advice5
  6. 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, Singapore6
  7. 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 debt7
  8. 8.  Hong Kong • Heavily impacted on banks’ income statements • Pre-tax profits deteriorated South Asian  Pakistan • Rupee value depreciated • Experience significant deterioration  India • Almost negligible8
  9. 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 effected9
  10. 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)10
  11. 11. 11