This paper investigates the reaction of US, European and Japanese bank stocks to economic and political news reports during the Asian Financial crisis period. I identify relevant events using key word searches during the crisis period and estimate their impact on the US, European and Japanese bank stock prices. The empirical evidence shows that adverse events in Asian countries affect most banks with exposure in these countries. However, it is seen that the exposed banks’ stock price reactions are not proportional to their loan exposure. The stock market still needs more accurate and public exposure disclosures from banks to formulate accurate reactions during the Asian financial crisis period.