This is in contrast with the crisis in the mid-1990s triggered by Thailand, when capital outflows there spread from one economy to another (including Indonesia and South Korea). The greater availability of information about the region and greater soundness with regard to the financial system have contributed to mitigating the herding behavior of investors.
More intense and effective supervision has to remain a central element of the supervisory and regulatory agenda. Closer  BIS central bankers’ speeches  5  supervision of institutions allows promotion of best practices and enables early identification of risks before they assume alarming proportions. Also, while regulation has to be specific to the jurisdiction, the supervisory tools can be universal.