Proceeding the Asian crisis,

Question

Quizplus · Accepted Answer

All of the statements are true. Bankers from industrialized countries actively sought to finance growth opportunities in East Asia, however, they failed to correctly assess the political and economic risks. The risk exposure of the lending banks in East Asia was primarily to local banks and commercial firms, rather than to sovereignties, and bankers were willing to lend huge amounts to borrowers with a limited potential to repay. These factors contributed to the severity of the Asian crisis.

Proceeding the Asian Crisis