COVID-19 Exposes Asian Banks’ Vulnerability to US Dollar Funding
Park, Cyn-Young; Tayag, Mara Claire; Rosenkranz, Peter | July 2020
Abstract
The unfolding coronavirus disease (COVID-19) pandemic has precipitated a sharp projected slowdown in the region’s growth, raising the specter of financial instability. Past episodes of financial crisis highlighted the region’s financial vulnerability given greater interconnectedness in global financial markets and institutions. The rapid globalization of financial markets, substantial short-term capital flows, uneven development of local capital markets, and deficient currency hedging mechanisms—combined with the region’s continued reliance on foreign borrowing and investment and insufficient crisis control mechanisms—underpinned the unfavorable dynamics of financial volatility during times of economic uncertainty and stress.
Citation
Park, Cyn-Young; Tayag, Mara Claire; Rosenkranz, Peter. 2020. COVID-19 Exposes Asian Banks’ Vulnerability to US Dollar Funding. © Asian Development Bank. http://hdl.handle.net/11540/12228. License: CC BY 3.0 IGO.PDF ISBN
978-92-9262-278-7
Print ISBN
978-92-9262-277-0
ISSN
2071-7202 (print)
2218-2675 (electronic)
Keywords
Macroeconomic
Macroeconomic Analysis
Macroeconomic Framework
Macroeconomic Models
Macroeconomic Performance
Macroeconomic Planning
Macroeconomic Policies
Macroeconomic Reform
Macroeconomic Stabilization
Economic Development
Economic Infrastructure
Economic Policies
Regional Economic Development
Microfinance Programs
Public Finance
Local Financing
Financial Stability
Financial Sector Regulation
Public Financial Management
Financial System
Financial Statistics
Foreign and Domestic Financing
Financial Inclusion
Foreign direct investment
Crisis
Resilience
Enterprises
Financial aid
Economies in transition
Local Finance
Local Government
Insurance Companies
Banks
Social Equity
Pension Funds
Mutual Funds
Financial Aspects
Fiscal Policy
Business cycle
Financial cycle
Financial literacy
Financial safety net
Social responsibility of business
Accounting
Personal budgets
Cost and standard of living
Bank accounts
Credit control
Regulatory reform
Banks and banking
Digital Financial Service
Pension plans
Individual retirement accounts
Employee pension trusts
Investment management
Investments
Multiemployer pension plans
Keogh plans
Individual retirement accounts
Pension plans
Employee pension trusts
Pension trusts
Investment companies
International banks and banking
Stock exchanges
Remittance
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