Reliance on Bank Loans Shields Asian Firms.

The article focuses on the reliance of Asian companies on banks as their form of financing. According to the authors, because Asian firms rely more on banking, they easily stand in the condition of global credit markets compared with U.S. and European firms. They report that businesses from the West have run full-tilt to the bond and short-term commercial-paper markets to finance their daily activities, as well as their expansion projects.