Banking system failures in developing and transition countries: Diagnosis and predictions
BIS Working Papers No 39
Thus, for example, it is unwise to defer macroeconomic stabilisation in the hope of concealing banking sector weakness. Likewise, a rigorous application to developing and transition economies of the consensus approach to microeconomic regulation should not be deferred. Political interference is the Achilles heel of any regulatory system: among other mechanisms, it may be possible to use disclosure rules and the pressures of globalisation to increase the political attraction of regulatory enforcement.