The structural changes relate to ownership, regulation and competition, both, domestic as well as external competition. Integration of financial markets is another dimension of the process: the integration of domestic financial markets is one aspect while global financial integration is another though a related aspect.
While global financial integration does have beneficial impact, the volatility in capital flows can cause instability, specially if a country has not reached the “threshold”, as very ably explained by Professor Kenneth Rogoff of Harvard University. Many emerging market economies do not seem to have adequate self-correcting market mechanisms in respect of such cross-border capital flows.