Two have been absorbed into existing bank holding companies, and the remaining two have been converted into new bank holding companies, which made them eligible for emergency government liquidity and guaranty assistance. In effect, then, government assistance has been available ex post to protect the counterparties of four of the five firms.
The surge in global inflation and the many accompanying structural changes risk pushing emerging economies away from better policies. I believe there are some grounds for optimism, despite the headwinds. In particular, we can build on the experience we have gained in emerging market central banking and monetary policy in addressing stagflation.