Asian banks: Now comes the real crisis
When the currency and stock-market contagion spread in November from south-east Asia to South Korea, bankers in Jakarta noted with irony that the chickens had come home to roost. For it was the cash-strapped South Korean banks which triggered off September’s currency crash in Indonesia which eventually spread to global markets.
Hit hard by corporate bankruptcies at home, the Korean banks refused to roll over short-term loans to borrowers in Indonesia, sparking off a scramble for dollars.
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