However, savings ratios in these countries are low, and this can be attributed to the cultural differences in the region, where people have a higher propensity of consumption and tend to quickly use up all their salaries. Third, family structure. In East Asian countries, families feature close bonds between family members, and the society relies heavily on families, which are given great social responsibilities.
In addition to balance sheet and sectoral restructuring, a second key stream of activity has involved assessing the embedded credit losses in the banks to ensure they are robustly recapitalised.