Much of this is standard neoclassical economics, but it bears repeating in these troubled times. Countries’ saving and investment propensities can differ markedly around the world. If economies were closed to capital flows, domestic interest rates would equilibrate saving and investment in each country. These interest rates would vary widely, which means that capital would have a different marginal value in each country.
I hope you all take advantage of this opportunity. Conclusion We thank the IFC and the World Bank for your sustained support to the BSP and the banking industry. Thank you to this community of regulators, government agencies, the banking associations, the sustainability advocates, colleagues and guests, for joining us in this endeavor.