Lending Booms, Real Estate Bubbles, and the Asian Crisis

By Abdelhak S. Senhadji, C. Collyns. Social Science Research Network, 2002

225 citations recorded by the source corpus.

This paper examines the link between lending booms, asset price cycles, and financial crises across East Asian countries. Both theoretical arguments and empirical evidence support a strong relationship between bank lending and asset price inflation, especially in the real estate market. While asset price bubbles were present in most Asian countries during the 1990s, their subsequent bust has affected countries quite differently. Some countries underwent severe exchange and financial crises, while others were able to weather the storm with much less damage. This experience underlines the importance of a strong bank regulatory system.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/c001734eac0f830d65d1316dd258dcb473232c8c

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

Citations in the corpus

Real Estate Prices and Bank Stability (2010, unknown): “House prices would then reflect economic cycles (see, for example, Herring and Wachter, 1999; Higgins and Osler, 1999; Collyns and Senhadji, 2002; Leamer, 2007).”
Monetary Policy and Asset Prices: Does 'Benign Neglect' Make Sense? (2002, unknown): “…the Nordic Countries, Spain, Latin America and East Asia, see e.g. Schinasi and Hargreaves (1993); Drees and Pazarbasioglu (1998); IMF (2000); and Collyns and Senhadji (2002). perspective, that uncertainty as to the sustainability of the boom is not per se a reason for inaction---no more than a…”
Bank Lending and Property Prices in Hong Kong (2005, background): “Collyns and Senhadji (2002) find that credit growth has a significant contemporaneous effect on residential property prices in a number of Asian economies.”