Second, quite often it is not a question of whether to have the presence of foreign banks, but, to what extent, under what conditions, over what time horizon and in what form - usually a particular form of presence being preferred.
A more difficult question, especially in regard to foreign investors in local banks, is the identity and the nature of investors - recognising that an absolute majority of portfolio flows originate in tax havens. The problem is, however, less complex in regard to highly rated banks. Finally, there are pros and cons in any package of policy in regard to foreign banks.