Even the flows we have seen have begun to raise concerns among policy makers in some of the emerging countries about potential risks of asset market excesses and eventual capital flow reversal. The banking sector For major financial institutions, the picture has also improved.
The general decline in risk aversion has eased funding problems, and some countries have been able to terminate or scale back their government guarantee programs as banks are increasingly able to access term funding markets under their own names. Share prices for those financial institutions that are still privately owned have generally increased by more than the broader market.