The internationalization of financial services¾ eliminating discrimination in the treatment between
foreign and domestic financial services providers and removing barriers to the cross-border
provision of financial services¾ is of global interest, but of special interest to Asia. Most of Asia limits entry of foreign financial firms much more than otherwise comparable countries. Empirical evidence for Asia¾ and other countries¾ suggests that this leads to slower institutional
development and more costly financial services provision. Going forward, Asian countries could
benefit from accelerating the opening up, in conjunction with further capital account liberalization
and domestic deregulation of their financial markets. Ongoing financial service negotiations...