Conclusion

The objectives of this book were: (i) to analyze a set of developing countries’ experiences in order to determine the reasons for the success or failure of financial reform policies in these countries; (ii) to identify a set of post-reform characteristics of financial market behavior, as well as some of the challenges and solutions for financial managers operating in deregulated financial markets; and (iii) to stress the importance of effective prudential regulation and supervision during and after the implementation of financial reform policies. The intention of this chapter is to highlight the important lessons based on conclusions derived from the discussion of these broad objectives and on the experiences of countries that have succeeded or failed in their financial reform efforts.1 It focuses on lessons relating to appropriate macroeconomic policies; to the level of real interest rates relative to the real return on investment; and to capital account convertibility, exchange rate expectations, and the implementation of financial reform. It emphasizes the importance of technical competence of market participants, the promotion of market-deepening institutions and innovations, and regulation and supervision of the financial systems of developing countries that are in the process of financial reform.