As we have argued previously, there is little doubt that there were growing problems in
each of the Asian crisis economies, that in a way could be understood as side effects of the
region=s very successes.2 Many of the problems had their origins in financial liberalization
policies introduced in each of the crisis economies in the late 1980s and early 1990s that led to a
very rapid expansion of the financial sector, and enthusiastic lending by foreign creditors. Entry
requirements into financial services were loosened, allowing new private banks to open.