Significant foreign investment flows to emerging markets have also to some extent contributed to imbalances between domestic and foreign assets and liabilities. Countries that have received large amounts of inflows, while enjoying the benefits of these, should always keep in mind that they are also building up increasing foreign liabilities, which are likely to affect future outflows of dividends and interest payments.
The speed with which IT implementation and upgradation is being done may outpace the frequency of IS Audit and it is in the best interests of banks that this vital activity is given due importance. IT also facilitates a host of other functions which banks have been hitherto performing through manual operations.