We lifted restrictions on deposit terms, amounts, and interest rates, and eliminated both mandatory credit allocation and deposit reserve requirements in the late 1980s and early 1990s. Unfortunately, this was done without first imposing more adequate bank regulations amid all these changes, along with appropriate supervision. Financial liberalization triggered the beginning of excessive, low-quality credit growth.
Also, it points to favourable developments in the future, as high-immigration countries are less susceptible to the strains imposed by an aging population.