Furthermore, as a side effect, such inflows gave rise to a significant appreciation of real exchange rates and a rapid expansion of credit, including through the shadow banking system, in many EMEs, thus increasing their vulnerability.
If, as a bank representative, you were to ask me what I expect from banks in return, I would say just one thing: I expect you to take up the challenge. In a market economy, coping with multiple challenges and an adverse business environment is the core responsibility of a business’s management. No one else’s.