Banks and financial integration The major risks in financial integration that emerging economies face relate to financial stability and in this regard the criticality of banks is generally acknowledged, but is worth reiterating in the words of Martin Wolf5:  3  Houben A., Jan Kakes, and Garry Schinasi, June 2004, 'Towards a Framework for Safeguarding Financial Stability', IMF Working Paper, No.WP/04/101, Washington DC.
4  Wolf M., 2004, Why Globalization Works, Yale University Press, New Haven and London. 5  Ibid. “Banks are the epicentres of financial fragility. The central role of banks in generating the financial feast and famine of the past three decades, particularly in relation to emerging market finance, is entirely predictable.