ADB: Asia could drag

ADB: Asia could drag

the World Continuous vague Crisis Impact

Manila - Asian Development Bank or Asian Development Bank (ADB) warned, financial institutions in the Asia-risk trail fall Financial markets in the U.S. According to the ADB, the risks that can happen up to now despite losses in Asia due to the impact of the crisis subprime mortage quite small compared to other areas in.

Asia can recognize and survive from the direct impact of financial turmoil that throws the U.S. and global economy. That caused the growth of domestic demand, increasing foreign exchange reserves, up to a healthy trade balance.

However, ADB President Haruhiko Kuroda warned that Asia could be affected sub-prime mortgage crisis in the U.S. "Since the crisis strike the U.S. in mid 2007 to the current level, losses in Asia is lower than any other region. However, there is no guarantee, some events will last no effect on financial institutions in Asia, "Kuroda said the ADB Regional Forum in Manila yesterday (18 / 9).
He expects the Ministry of Finance, the central bank, and determine the policies keuangandi Asia a dialogue concerning financial stability. Forum to discuss the development of regulations and also to improve the coordination of supervision of the financial markets in Asia.
Keith lui, executive director of the Hong Kong Securities and Futures Commission, recognizes the impact of sub-prime mortgage crisis in Asia is very minimal because only a few institutions that invest in subprime products.

However, Davis Fernandez, the chairman of JP Morgan Emerging Asia Research, thinks the impact of the financial crisis in the U.S. had the most striking in Asia. Visible from the performance of capital markets Asia's most poorly among other developed economies.

In the larger scale, some of the central bank in the country's economic progress has continued to repress and overcome together the impact of the U.S. financial crisis. Central banks the world to perform surgery with muffled panic in the credit market.
Federal Reserve (the Fed) on Wednesday (17 / 9) or the U.S. yesterday WIB (18 / 9) fund an USD 180 billion (approximately Rp 1,692 trillion) into the money market. This is done to provide short-term liquidity for the banking and secondary.

European Central Bank (ECB), Bank of Japan (BoJ), Bank of England (Boe), Bank of Canada, and the Swiss National Bank also joined in the same movement. The coordination is designed to overcome the pressure continuously on the market short-term funding. BoJ continue mengintervensi market. Yesterday, the Japanese monetary authorities in the menggelontorkan funds EUR 23.9 billion (approximately Rp 224.66 trillion) into the money market. several other central banks to pour hundreds of billion USD.

Source Java Post, 19/9/2008 interests

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