In 1997 the then-prime minister of Malaysia, Mahathir Mohamad, branded one of the world's largest hedge fund managers, George Soros, a "criminal" for shorting his country's currency after it was floated and blamed him outright for sending it to rock-bottom levels.

Malaysia, like Thailand and its South-East Asian neighbours, was weathering the Asian currency crisis that began when the Thai baht was floated on July 2, 1997.

As other currencies were floated they followed the baht's journey south.

Mahathir's sentiment prompted Malaysia to implement currency restrictions that in effect stopped many foreign investors withdrawing funds from the country. It stabilised the currency but damaged the international reputation of Malaysia and it took many years for this confidence to be restored.

While quick to jump on the "tiger economy" bandwagon in the up years, Western bankers were just as quick to criticise South-East Asian economies for poor lending practices, lax credit standards and draconian reactions post-crisis.

How the mighty have fallen.

The Asian economy bail-outs came from the International Monetary Fund but with them came strict criteria. As part of the conditions for its initial $US3.9 billion standby credit from the IMF, Thailand suspended 58 finance companies. The remainder had to strengthen their capital base and mergers were encouraged. Indonesia was required to have its state-owned banks audited by internationally recognised accounting firms for its $US10 billion.

In contrast the US bank rescue package was revised last week to include $US150 billion in tax concessions for individuals and businesses. It also included an increase in the sum of bank deposits covered by insurance to $US250,000 from $US100,000.

The Asian crisis IMF rescue packages, which started in 1997, may pale in comparison with the $US700 billion package but their upshot - the stronger financial systems that eventually resulted - means Asia is in a much stronger position to weather current financial instability.

Compared with the US, Asia's banking systems now could almost be called healthy. As one commentator noted this week, the irony will not be lost on many in Asia.