| dc.description.abstract | This paper revisits the East Asian financial crisis of 1997 through reexamining how imprudent lending and poor credit risk management devastated the financial systems of many emerging countries in East Asia. The paper also explores the state-controlled banking system of China and Vietnam, the two countries least affected by the events of 97. Incompetency and inefficiency, due to non-competitive environment, in banks' operation of these two countries are also addressed. Vietnam, in particular, has recently experienced a banking crisis in which it has repeated the very same mistake that caused the crisis of 1997 regarding credit risk management. This paper proposes potential solutions, some of which has already been undertaken by the Vietnamese authority, to improve the overall health of the banking system and prevent future occurrence. Unsurprisingly, the government and the State Bank play a critical role. | |
