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minor in scope. a number of banking organizations from developing countries have also had difficulties related to inadequate controls in recent years, particularly banks from countries with weak supervisory oversight. the difficulties have created significant losses for these banking organizations. the lessons from these cases for developing country supervision are that basic control functions are critical to all organizations, no matter what the size, and that banks operating overseas must be monitored carefully and continuously. related to these cases is the broader issue of implementing a rigorous supervisory structure for foreign banking organizations. we have seen in our markets that the increased competition produced by opening the banking sector to foreign institutions can enhance efficiency. for developing countries, the introduction of foreign competition is likely also to introduce a transfer of skills to the local banking community. staff trained by foreign bankers often move to local institutions, and foreign bankers themselves have been involved in training local banking staff. for example, in the people ’ s republic of china, a prominent u. s. banking organization has been providing training for staff and executives of state - owned, local banks - - training the organization believes will benefit its business in the longer run by increasing the sophistication of the market as a whole. yet from the perspective of the home country supervisor, introducing an appropriate supervisory apparatus is important to monitor the activities of these banks and to enhance the host supervisor ’ s understanding of the global institution and supervisory framework in the home country market. the development of a clear supervisory framework for foreign banking organizations will improve the safety and soundness of the banking sector as a whole. and in addition, the supervision of foreign banking organizations may provide a training opportunity to host supervisors in developing countries, given the quality of information and risk management practices in many foreign banking organizations operating in their market. conclusion the increasingly integrated nature of financial sectors around the world has increased the importance of sound banking supervision in all financial markets. the u. s. experience provides valuable lessons for the development of effective supervision in developing countries, but those lessons must be viewed within the institutional context of each market. the earlier stages of development in our system may hold the most important practices for developing countries. i wish you all the best in your very important work in this field and have greatly enjoyed the opportunity to speak with you today.