But I think that the global and multilateral approach which the WTO has taken, as a successor of the GATT, will at the end be the only one which will be capable of providing the basis for a stable global financial system. To this end, it would be desirable if the prudential rules and sound supervisory principles agreed in the Basle Committee, and endorsed by the G-7, would be applied in all countries and to the whole banking system. The adoption of the BIS principles will do much to strengthen the resilience of financial systems, particularly in emerging markets. But they will not of themselves create a dynamic and vibrant banking industry. For that to happen, markets need to be open.
Open markets increase market efficiency and encourage innovation.
Not just in banking, but throughout the economy. Modern finance is like high speed telecommunications, no country can aspire to play a leading role without them. The most open economies will be the ones that will grow most rapidly and attract the most long term capital. I believe that many developing countries are taking this to heart. Imposing restrictions, like capital controls, offers no long-term solution.