In this middle world between intermediation and the market, in which neither worked, there were simply not enough incentives to mitigate risk. Please do not misunderstand me: I firmly believe that those innovations which have created real economic value added will survive in the long term.
The return on equity ratio rose to just over 17.5 percent from around 17 percent over the same period. While the direct exposure of local banks to foreign markets is low in relation to their asset base, continuing economic stress in a few countries calls for on-going monitoring and vigilance.