Describe the conditions leading up to the crisis.

Make a case study about the above-mentioned event: the banking crisis in China, P.R., 1998.
Describe the conditions leading up to the crisis. Was there a clear trigger ?
• Was the banking crisis preceded or followed by another type of crisis?
• What were the institutional banking conditions, e.g. deposit insurance?
• Were there indications of a relaxation of banking regulation or lending
standards prior to the crisis ?
• Was there a bank run ?
• What were the consequences of the crisis? How costly in terms or saving
banks, or of lost GDP? Were new regulations enacted as a result?
• What was the role of the central bank ? (Note you should also specify and
investigate the institutional entity responsible for banking regulation)

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