The secret of growth was then not just to strengthen the market but to cut the costs of doing business, to improve education and skills, to upgrade technology and, especially, to strengthen public institutions by reducing corruption and improving the rule of law.
The additional capital requirements in combination with enhanced risk management standards, in theory should lead to reduced risk of bank failures, and should decrease the interdependence between financial institutions, effectively reducing the risk of future banking crises.
More generally, affirmative action programs can be seen as a way of reducing the social distance between governing institutions and minority communities that tend to be under-represented in government.
Financial institutions risk being caught between two unattractive choices: offering advice and reducing their margins, or offering no advice and winning fewer customers.