3.2  Raising banks resilience  The good news is that, today, banks are much better capitalised than they were five years ago. And this is in line with the new international regulatory standards. Basel III requires banks to hold more and better capital. This raises bank’s capacity to absorb losses and makes them more resilient against sudden shocks.
Market structure consists of the degree of competition, and interlocking control between financial institutions and business enterprises as well as the degree of specialization within the financial sector. It is influenced by the internal organization and management of financial intermediation. These in turn, are affected by the degree of government ownership and control.