JICA-RI is currently conducting a research project that analyzes Thailand’s recovery process to see the implications for sustained economic development in Asia.
Digital In that sense, I think that surplus global liquidity, combined with an interconnected global financial system, did play a role in setting the conditions for this massive housing bubble.That said, one of the most surprising things over the last ten years is that the total amount of debt in the world has continued to grow. Design We also are starting to see the rise of new technologies, like blockchain, that would enable potentially huge efficiencies in financial transactions but that also are decentralized.One area to watch as we go forward is how the move toward a world of digital finance, digital payments, and robotic artificial-intelligence-driven trading and financial markets—how those impact market dynamics. Marketing & Sales Susan Lund: The epicenter of the global financial crisis was really the housing market.
When you look at their growth prospects, investors are taking a pretty dim view on how fast these institutions will be able to grow. It is the engine that drives Thailand’s economy. But a lot of the potential risk in global imbalances does seem to have subsided.It’s hard to foresee what the next crisis might be. Thailand’s economy has recently recovered from the two financial crises of the 1997 Asian Financial Crisis and the 2008 “Lehman Shock,” and in 2010 is now growing steadily at nearly 8%. Healthcare Systems & Services In the US, now roughly half of all new mortgages are coming from nonbank lenders. With the strengthening of banks, the volume of loans recovered to the pre-crisis level of 2005, consequently easing the burden on debtor companies.Due to differences in their approaches to financial restructuring, Thailand’s restructuring process was much slower than Korea’s. Financial Services Private Equity & Principal Investors Then the economy fell into a recession and people lost their jobs, so they couldn’t afford these very large mortgages. Then they took those and pooled them together again. They are aware that despite the low prominence of domestic companies, both economic growth and economic upgrade are progressing simultaneously. Most domestic firms have not yet developed to become assembly or parts manufacturing companies. But that is the exception. Since the Asian financial crisis in 1997, Thailand has become highly dependent on export as the engine of economic recovery and growth. An official from Thailand’s central bank was quoted just recently in an article, saying that the country’s export-dependent economic strategy should be revised and switched to a domestic demand-driven approach.During our field survey, many economists told us that the foreign capital-dependent, export-driven strategy can still be effective for the time being. A common metric is the price-to-book ratio [Exhibit 3]. Even though the US mortgage picture looks good, it’s very clear that ten years on, US households and individuals are still struggling. Please email us at: We strive to provide individuals with disabilities equal access to our website. That’s obviously a problem for banks and their shareholders, but it’s also a systemic problem for all of us because one of the temptations might be to start to engage in riskier-but-higher-return type of activities that led to the crisis ten years ago.Over the past ten years, as global banks have retrenched, companies have in fact turned to bond markets outside the United States. Yet it is safe to say that, even though financial restructuring played a major role in the economic recovery, the main cause of its delay was this private sector-driven approach.” Naturally, commercial banks carrying considerable NPLs were cautious, and reluctant to lend money. And suddenly a lot of households found that they had a lot of debt. Real Estate At the same time, all of this was fueling housing-price increases. Oil & Gas But there are a couple things I think are worth looking at. Analytics This is particularly true for foreign-currency-denominated loans, which are now in the trillions of dollars of worth. In both cases, an enormous amount of capital was injected into the economies, of which a large part was speculative. And this is a good thing in terms of systemic risk, because it means that companies are diversifying their sources of financing, and we think that there’s lots more room for sustainable growth.Now, that’s not to say that some countries aren’t running large current-account deficits or surpluses.
And the Chinese government has plenty of capacity to bail out the financial system, because its central government debt is quite low.For instance, cryptocurrencies.
Operations One example is Nissan Motors, which has started to manufacture eco-friendly cars in Thailand and is re-importing them to Japan. That’s quite worrisome for the future, because student loans cannot be defaulted on. The crisis also exposed the weaknesses that were inherent in their economies. It started in the United States, but it turned out that similar housing bubbles were building in … Consumer Packaged Goods Risk Select topics and stay current with our latest insights The other is the foreign firm-dependent, export-driven strategy adopted by the Thai government.It realigned the banking sector by first closing down 56 financial firms, and then urged commercial banks to dispose of their nonperforming-loans (NPLs) and increase their capital bases.