Through the 1950s and 1960s, Japan re-emerged as a major economic power. Then Korea took off in the 1970s, followed by other so-called “Asian tigers” during the 1980s and 1990s. Now, it’s China’s turn. And India is not far behind. What makes the ascent of China and India different from that of other countries is their sheer size.
To counter the possibility of an asset bubble in addition to concerns about credit quality led to risk weight on banks’ exposure to the commercial real estate (CRE) and capital market being increased from 100 per cent to 125 per cent in July 2005.