Global integration has, of course, its drawbacks: the reason for this is that the openness of the financial markets may also serve to spread turbulences. Risks may have their roots in major groups of investors, in the shape of overly credit-financed leverage. Also, to some extent, in the form of an observed tendency towards herding behaviour.
Moreover, there is a growing consensus of opinion that macro-prudential policies should be put in place to enhance the soundness of financial institutions’ behavior and ease the procyclicality of foreign capital flows.