While I appreciate the natural sensitivities of countries trying to build their own economic capabilities, emerging market economies seeking to strengthen their own financial systems should not restrict – and, indeed, may want to encourage – entry by foreign banks.
Foreign banks will bring with them the human and financial capital that can raise the level of financial expertise for the entire industry, to the benefit of local banking services. The presence of such global banks will also foster the development of complementary institutions, such as credit-rating agencies and accounting firms, that will be valuable for both local institutions and national supervisors.