Ring-fencing Toxic Assets: Establishment of AMCON
A common theme among policymakers, following the 2008–09 financial crisis, conceivably echoed the ‘never again’ pacifist mantra, uttered to repel the spectre of a global economic depression. It should be noted that not all countries were directly exposed to the toxic effect of the mortgage-backed securities liberally sold abroad by US investment firms, China being a prime example. However, the sudden economic contraction, huge job losses and credit crunch in the US had cross-border repercussions due to the interconnectedness of global financial markets. The crash of commodity prices, decline in stock markets and shrivelling trade flows meant that no nation was immune from the spreading panic.
KeywordsBanking Sector Asset Management Asian Financial Crisis Coupon Bond Malaysian Government
Unable to display preview. Download preview PDF.