**189** Park (2001: 66) **'9** Tumer (2001: 337) **19'** Although not specifically stated, presumably<sup>thisis areferenceto the BaselCommittee'smulti-track</sup> effort to revise the Basel Capital Accord,<sup>whichincluded a proposalforaninternal-ratingsbasedapproach</sup> ("IRB approach") to regulatory capital.<sup>See Web site at <http:Hlwww.bis.org/publ/bcbsca.htm>for recent</sup> uVdate. 2Turner (2001: 339) '9' As of 1998, China was the only country<sup>(out of 51industrialand emerging countriessurveyedby the</sup> Institute of International Bankers) that<sup>had a completely"pure"separatebankingsystem,rmeaningthat</sup> banks are not permitted to engage in<sup>anytypeof securitiesactivity.[ClaessensandKlingebiel(2001:26)]</sup> 194 Asian Policy Forum (2001), Yoshitomi<sup>and Shirai(2001), andShirai(2001a)</sup> **195** Yoshitomi and Shirai (2001: 69) 196 Shirai (2001 a: 34) 197 World Bank (2002b: 79) 198 See Shirai (2001 a: 46-55) for further<sup>details.</sup> 199 ADB Institute (2001) and Asian Policy<sup>Forum (2001)</sup> 200 Kawai (2002: 86-87) 201 A complete review of bank restructuring<sup>in Indonesiais presentedin Pangestu and Habir (2002).</sup> 202 See Kuroda (2001), Kobayashi (2001),<sup>Sakakibara(2001),and AsianPolicyForum(2001).</sup> 203 See Chapter V of this paper for<sup>descriptionof NMI.</sup> 204 Asian Policy Forum (2001: 23) and<sup><http://www.mof.gojp/EnglishIif/eleO42.htm>.</sup> **205** Park (2001: 58) 206 Asian Policy Forum (2001: 22) 207 Asian Policy Forum (2001: 23) and<sup>Kuroda (2001:77)</sup> 208 Asian Policy Forum (2001: 22-23) 209 Australia and Hong Kong already have<sup>a link-upin placefor their securities clearing systems.</sup> **210** Park (2001: 59) 211 Harwood (2000: 9)

212 Sydney would also be in this category if<sup>Australiais includedin the region.</sup> 213 Freeman and Bartels (2000: 1-2)

**214** Although the primary outflows were<sup>bank-lendingflows,therewereconsiderableportfolio(equity)</sup> outflows as well. A6cording to Rajan<sup>andSiregar (2002), theseoutflows "playedanimportant'supporting</sup> role' in the regional crisis" (62). **215** IMF (2002b: 17)

Freeman (2000: 10) 217 Wilson (2002: 25) cautions against<sup>becomingoverly distractedby downwardvaluationchangesrelated</sup> to financial crisis when assessing the<sup>long-termprogressin financialdevelopmentand market</sup> sophistication because prices do not provide<sup>sufficientinformationabout theunderlyingefficiencyof the</sup> market.

218 Wilson (2002: 25) 219 Freeman's analysis is based on<sup>data prior toJuly 2000.In view of thesubsequentdeclinein techstocks</sup> worldwide, this may have altered somewhat.<sup>However, Freeman laterimpliesthat thesectoral bias is fairly</sup> well entrenched in the region.

220 Freeman (2000: 6) 221 Yang and Siregar (2001: 24) _2m_ Freeman (2000: 8 and 22)

**223** Freeman acknowledges that he is not<sup>thefirstto makesuch a proposal.The Bankof ThailandGovemor</sup> Chatumongol Sonakul proposed<sup>a joint venturebetween the equity markets inBangkok, KualaLumpur and</sup> Singapore in May 2000.

224 Freeman claims that the role of foreign<sup>institutional investorsin thecrisiswas exaggeratedandthattheir</sup> guilt was less than that of foreign commercial<sup>banklenders.</sup> Rajan and Siregar (2002: 74)

**226** Demirguc-Kunt and Levine (200 lb:<sup>12)</sup>

**227** Legal systems having European origin<sup>include English CommonLaw and the French, German,and</sup> Scandinavian Civil Law. English<sup>Common Lawdiffers fromcivil lawin that laws wereformedprimarily</sup>

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