Backgrounds to the robustness of Asian financial system  This begs the question: How could Asian financial systems remain relatively robust this time? In my view, the main reason is that the memory of the previous severe financial crisis was still fresh in our minds, and the lessons learned from that crisis were put to good use, even if not perfectly.
There were a variety of factors behind the Asian financial crisis, and they were combined with each other in a complex way. The key factor that directly precipitated the crisis was the double mismatch of currency and maturity formation in the asset and liability structures of financial institutions, creating a downward feedback loop between currency risk and liquidity risk.