The 1997 Asian financial crisis was a period of financial instability in East Asia that began with the collapse of the Thai baht in July 1997. The crisis spread through East and Southeast Asia, affecting countries such as Indonesia, Malaysia, South Korea, and Thailand. it eventually led to the bankruptcy of several companies and financial institutions and put immense pressure on regional economies.

The crisis was precipitated by a number of factors, including large capital inflows into Southeast Asia that led to unsustainable levels of borrowing, over-reliance on short-term foreign debt, and questionable economic policies. These factors put immense pressure on regional economies and led to the collapse of several companies and financial institutions.

The after effects of the crisis were felt for many years afterwards, with some economies still recovering from the impact. The Asian financial crisis was a reminder of the importance of sound economic policies and the need for countries to maintain healthy levels of reserves. It also highlighted the vulnerability of smaller economies to shocks in the global economy.