Signs of stress: Is Asia heading toward a debt crisis? McKinsey answers
Updated : August 27, 2019 12:54 PM IST
Global management consulting firm McKinsey & Co observes that the warning signs of a new crisis in Asia are "ominous".
According to McKinsey & Co, three fundamental signs of stress seems to be building throughout Asia. These include rising debt, dependence on banks and shadow-banking institutions, and fall in capital inflows.
In 1997, the Asian financial crisis was partly triggered when merchant banks in South Korea were caught in a severe credit squeeze. The country’s 30 merchant banks were heavily exposed to troubled companies, undercapitalized, and holding significant foreign-currency liabilities.
Have you signed up for Primo, our daily newsletter?
It has all the stories and data on the market, business, economy and tech that you need to know.
THANK YOU! You made our day. See you every morning
YOUR EMAIL IS ON ITS WAY. Check your inbox for future updates.
To keep watching CNBC-TV18, India's No. 1 English Business News Channel, call your Cable or DTH Operator and subscribe now for just Rs. 4 per month. You can also subscribe to CNBC-TV18 Prime HD for Re 1/- per month.Find out more