The evaluation looked at broader effects of reforms on the ﬁnancial system and on the real economy, and it looked at costs and beneﬁts from the social perspective, which is not the same as the perspective of the private sector. For example, successfully lowering implicit subsidies means higher funding costs for banks – but at the same time lower costs for taxpayers.
The ﬁnancial crisis has slowed down, but not reversed, the long-term trend towards global ﬁnancial integration. The aggregate retrenchment in international banking since the crisis stems from a decline in cross-border lending by European banks. Cross-border lending between other regions has continued to expand. At the same time, lending by international banks has shifted to more stable locally-funded sources in local currencies.