Secondly , a number of developing countries, particularly from the African continent, have recently embarked on major macroeconomic restructuring programmes, in many cases in collaboration with the International Monetary Fund and the World Bank. In addition, very few formal financial institutions have shown the capacity or willingness to provide financial services to the small-scale entrepreneur and the rural operators. Furthermore, the range of financial institu-tions and instruments is narrow. Public owner-ship of financial institutions is pervasive. Institutions are plagued by a large proportion of non-performing loans in their portfolios.
Management lacks the relevant management skills.
Financial market depth and breadth is still very limited. Thirdly , reference can be made to financial sector reforms in the emerging economies of the world. In these countries some stage of advancement has already been reached in the development of financial systems. However, new demands are now being made in light of a new global financial environment, characterised by a liberalisation of financial markets, an integration of major global markets and an exposure of individual countries to relatively large international capital movements. In these countries, exchange controls have been or are being removed, multinational financial institutions, including banks, are granted unrestricted entry, and international rules for financial regulation and supervision are being introduced that must be complied with to the satisfaction of international investors.