And let me tell you, this is a big challenge as not only the number of regulatory changes that banks need to comply with has more than tripled since the last decade but the scope and complexity of these regulations have expanded from multiple perspectives. I will now briefly discuss some of the consequences of the financial crisis and measures I just described.
- First, while the focus of these measures was to repair banks’ balance sheets and improve financial stability, they also led to contraction of the cross border lending activities. - Second, you may all agree that since the Financial Crisis, a partial reversal in international banking continues as multinational banks from the developed world have scaled back their offshore operations.