If the foreign operation has been thinly capitalized and is lacking in liquidity, host country officials may face an unpleasant choice between supporting a foreign bank (including operations for which they have not had consolidated supervisory responsibility) or allowing it to fail in a disorderly fashion, with potentially serious knock-on effects in the host country’s financial system.
Legislators have approved, in various steps, measures to reduce red-tape, to simplify bureaucratic procedures for starting and running businesses, to improve the efficiency of the public  -5-  administration and the judiciary system, to prevent and fight corruption, to stimulate innovation, and to achieve a more flexible and dynamic labour market.