These savings were mostly held in official reserves, which increased six fold to around five trillion dollars in only a decade. Because financial markets within Asia are underdeveloped, the reserves were invested in advanced economies, for instance in US treasuries. This may have reduced long-term interest rates and fuelled the credit boom.
While the savings glut did contribute to global liquidity, it is not the only explanation. After all, Asia still plays a relatively modest role in financial globalisation. Asia, like many other emerging markets, is not so financially integrated. The average size of foreign assets and liabilities is only around 70% of GDP in emerging markets, against a much larger 220% in advanced economies.