The banking system in emerging economies: how much progress has been made? - BIS Papers No 28, part 1, August 2006

The first annual meeting of Deputy Governors from the emerging markets took place at the BIS in February 1995. It had as its central focus the challenge to central banks (and supervisors) as countries moved towards a more liberal banking system in the context of wider capital account convertibility. There was at that meeting a common sense of unease about short-term capital flows, a good deal of scepticism about exchange rate pegs, and much debate on what could be done to improve the resilience of banking systems to external shocks. The Mexican crisis of December 1994 had given these worries particular urgency.