As a result, the degree of concentration on the banking markets of many countries has vastly increased. Especially in the smaller countries of Europe, the five largest banks often account for more than 50% of the national market.
The financial system is dominated by banks, although nonbank entities account for about 40 percent of total assets. Openness to investment has led to foreign control over approximately 70 percent of total bank assets. Financial intermediaries have healthy balance sheets, with strong capital and provisioning ratios, and most meet high liquidity standards. Increasingly credible economic policy has undergirded the development of the financial markets.