Analysis of recent data and associated regulatory developments in all these areas (banking, securities and derivatives markets) is presented in various BIS publications.38 While seeking to be neither alarmist nor prescriptive, this analysis does also attempt to highlight points of strain in the international financial system.
Examples going back to 1996 included comments on the heavy exposure of Thai and Korean banks to short-term foreign currency financing, and the sharp reduction in both credit and market risk premia associated with relatively risky investments worldwide. The fact that these concerns were generally ignored, as were the similarly muted warnings by other international financial institutions, seems worthy of further reflection.