5  The term “rules” is used in a broad sense and refers to similar laws and regulations, supervisory arrangements, market conventions, standards and practices. 6  Belgium, Germany, France, Italy, Luxembourg and the Netherlands. BIS Review 8/2008  3  For example, over the last few years, volumes of cashless payments in the European Union have increased by 7% per year.
Small open economies differ from their larger counterparts in several respects: •  Their economies are often less diversified and are more vulnerable to external shocks;  •  A large portion of their banking system may be foreign owned and regulated by home and host supervisors.