This article continues the annual series on international banking and capital market developments. The article is in four parts: an overview; separate sections on capital markets and international banking developments; and a review of borrowers. There are features on equity issues overseas and on sources of statistics on international borrowing.
- The pace of innovation and deregulation in the world's financial markets slowed, but new issues on international capital markets continued to expand and banks' international interbank lending increased sharply.
- Debt problems persisted among certain developing countries; debtor countries received little new bank lending, either spontaneous or associated with new money packages.
- Events during the year illustrated particular kinds of problems that can arise when credit flows are channelled through the securities markets.
- International financial markets were heavily influenced by the Japanese as intermediaries, investors and borrowers.