Second, more and better financial integration by EMEs We all know that trade integration has enabled many EMEs to grow rapidly and accelerate their catch-up processes. I believe that financial integration can do the same for EMEs, by improving resource allocation within and across countries and offering greater liquidity and risk hedging.
The diverse development stages and demographics of EMEs offer very fertile ground for efficiency gains from financial integration. These gains can of course be reaped only if the attendant systemic risk is adequately controlled. But the strengthened Basel III framework will render financial integration by EMEs more opportune going forward.