For instance, the share of non-performing loans and write-offs declined by 0.3% to 0.6% after the removal of these restrictions. Deregulation, which allowed for financial integration across states, also fostered bank consolidation, thus allowing banks to realise economies of scale and specialisation benefits.
In emerging market economies, growth is expected to remain resilient in commodity importers, while activity in commodity exporters will bottom out after deep recessions in these economies. World trade is projected to expand in line with global activity over the medium term. Nevertheless, there are several medium to long-term challenges affecting the prospects of the global economy.