The pace of integration in the banking sector has been uneven. Integration is well advanced in wholesale and capital-related activities, while it is lagging behind in the retail markets. This partly reflects differences in the nature of competition in these segments of financial services.
On its own, however, foreign aid may not be sufficient. For it to be effective, it also requires coherent development programs. Large flows of foreign aid, for example, are unlikely to be helpful if they finance unproductive investments or delay needed structural reforms.