Publication

This paper examines the extent of financial sector liberalization and the introduction of greater foreign competition in selected emerging Asian economies. The authors find that most of Asia continues to lag behind other emerging markets in Central and Eastern Europe, and Latin America in deregulating their financial sector. They conclude that although there are some valid concerns regarding the internationalization of the banking sector, many of the concerns regarding foreign bank entry arguably have more to do with the timing and pace of the deregulation process as well as the mistaken belief that foreign bank entry is synonymous with capital account deregulation.