But it is one that also carries substantial risks. The right answer is not to avoid liberalizing for ever, but to carry it through in a carefully thought out and disciplined manner. In that way, it may be possible to achieve the objectives of integration without the crises that have, so often punctuated movement in that direction”.(p.288).
Thus, one of the important considerations for encouraging the presence of foreign financial enterprises is to ensure adequate and healthy competition. The compulsion to expand foreign enterprises would thus depend on quality of competition that is already existing in a country. In any case, the consensus appears to be that process of liberalization in financial sector has to be carefully calibrated and sequenced.