Zeti: Resilience and capacity to manage shocks key to surviving crises

GOING forward into the future, the world is likely to continue to be plagued by financial crisis. History has shown that there has been more than a hundred distinct banking crisis in the recent two decades.

While the trigger factors for such financial crisis may be different, for most, there was a general loss in confidence, disruptions in the financial intermediation process and a general downward spiral of asset prices. While it is argued that what is needed is the reform of the international financial architecture, for any individual country, the prospect of surviving such a crisis is not only about building resilience, but also having the capacity to effectively manage the crisis.