As financial regulator, I encourage local financial institutions to participate in syndicated loans which will accelerate the expansion and internationalization of our financial sector. In the process, we should  2  BIS Review 63/2007  always be on the alert to mitigate losses arising from reckless lendings which will certainly undermine the stability and healthy development of our financial sector.
Before the Asian Financial Crisis, some might use the term “asset-based financing” to describe the lending culture of the region. Many credit exposure were in fact backed by assets before the crisis. But after the value of these assets had taken a nose-dive, the shock to the financial system was critical and it took a long time to recover.