In any event, the most important challenge to ensure financial stability is how we can strengthen credit underwriting discipline and liquidity management, which, after all, provide the most reliable protection for the sound financial system. 8 In that regard, it should be noted that the pendulum has swung back and forth in the discussion of models for financial regulation and supervision.
Simply put, the Asian model was downgraded after the Asian crisis, and the Anglo-Saxon model was also downgraded this time, although the exact meaning of those models has remained vague. It should be also noted that the soundness of financial institutions before the crisis differed between the countries.