Asian banks and the international interbank market

Banks in the Asian economies most affected by the Asian financial crisis generally continue to enjoy comfortable liquidity in the international interbank market. The apparent international illiquidity of banks in Korea is concentrated in foreign banks. Foreign banks' offshore funding of local currency assets may in places have created a new vulnerability of local markets and banks to global bank liquidity crunches.

JEL classification: E58, F32, F34, G15, G18, G21.

Includes box: The Asian financial crisis: international liquidity lessons