The East Asian financial crisis showed that connections with powerful groups increased the chances of financial institutions getting into trouble. These connections also made it more likely for troubled institutions to be shut down. Big banks were more likely to face problems but less likely to be closed, hinting at a "too big to fail" policy. Politics and regulatory capture played a role in the distress of financial institutions. After July 1997, 42% of banks and nonbank financial institutions in East Asia faced distress, with 13% closed by July 1999. Factors like returns on assets, loan growth, and connections with influential families affected the likelihood of distress and closure. Foreign-owned institutions were less likely to face problems, while smaller nonbank financial institutions were more likely to be closed.