Moreover, most Asian financial institutions adopted a cautious approach towards the complex securitization products in their investment decisions, as memories of the Asian financial crisis were still fresh in their minds. This led to the comparatively lower credit costs this time. Second, the Asian regulatory and supervisory authorities made efforts to enhance the resilience of their financial systems.
They used a variety of measures to enhance the robustness as well as the transparency of the financial systems, including attracting foreign capital and facilitating mergers. Moreover, with the enactment of laws and regulations concerning deposit insurance and prompt corrective action, the financial systems were provided with safety-nets to ensure stability in times of crisis.