Allowing foreign financial institutions to operate in an emerging-market country brings in expertise and  5  A survey of the literature that links a lack of sufficient prudential regulation and supporting institutions to excessive risktaking and the possibility of a subsequent banking crisis is in Demirguc-Kunt and Detragiache (2005).
On 31 May, the Bank issued its latest policy rate announcement. These provide the basis for my comments today. Please bear in mind that the Bank’s next full economic analysis will be published in the upcoming MPR, which will be released on 20 July 2011.