Evidence suggests that the costs of banking crises in terms of lost economic growth are higher in emerging market economies than in industrial countries, and that problems in a single bank have a high probability of turning into a systemic crisis. The evidence also suggests that in recent years many banking systems in emerging markets experienced a deep transformation under the pressure of internal financial liberalization, increased openness to international capital flows, and technological and financial innovations. The most recent financial crisis and global recession have put further pressure on banking institutions and financial markets in emerging economies.