Asian Banks in Trouble

Emerging Asia, analysts argue, is all wrapped up in debt. For some time now they have warned about the dangers involved in the rising volume of private debt—both corporate and household—in Asia, as a result of a reversal of the tendency to reduce debt and repair balance sheets that began immediately after the Southeast Asian crisis in 1997. Stated otherwise, the effects on Asian debt of the 1997 and 2008 crises, or the one that primarily affected a few countries in the Asia-Pacific region and the other that affected the centres of developed capitalism, have been very different. While the…