In the eurozone, a large proportion of savings banks and co-operative banks belong to institutional protection systems, within which they undertake to support each other mutually. From a strictly accounting point of view, these networks do not constitute banking groups. However, regulators recognise that they are highly integrated and allow their members to apply a prudential treatment similar to that used by companies belonging to consolidated groups. These mutual support arrangements are to some extent part of the trend towards consolidation in the banking industry.
Malaysia has been relatively resilient to shocks in recent years thanks to a unique growth model built around three pillars: political and social stability, economic interventionism – which has fuelled the country's industrialisation – and international expansion. Yet at a time when economic policy has little manoeuvring room and global trade is slowing down, Malaysia's growth model has to face new challenges if the country is to join the ranks of the high-income countries by 2020.
