When 42 Thai finance companies were suspended in August, raising the total to 58, billions of baht in deposits flowed out of smaller banks into bigger ones or into foreign institutions like Citibank. Many Thais are also declining to take checks, like building-materials dealer Long Wanameetej. In China, bank customers worry that their own central bank may be ripping them off in currency trades. Koreans criticize bankers for having little stake in the institutions they run. And that red ink doesn't even include provisions for mounting bad loans.
Some people are gloomy.
I am not. I'm sure this will pass. Institutions in China now offer fingerprint recognition for clients concerned about interbank theft or fraud. In Indonesia, competition is stirring as a few large banks offer hefty interest rates to woo depositors. Also spurred by a global trade pact covering financial services, banking competition will, at the same time, increase pressure on Asian banks.