text: developed narket economies' large international banks. For bank credit !o be made available to deficit counCries. tero necessary and sufficient conditions musC be met: the large internaEional banks should have the capacity to attract fundsr and they must decide to lncrease their inCernational lendin9. Hovrever ' the i.nternational private banking system is not a closed syslem. Its total assets and liabilities expand or conlract because bank deposits are not the only option available for savers, whether domestic or foreign, nor is international lending lhe only option available to banks. The volume. terms and conditions of international bank credit are therefore affected by changes in the monetary and fiscal policies' the structure of interest rales and the risks and relative expecled profitabilitieg in the financial and real markets of the key conver tible-cur rency countries' 40. The fact that mafker-supplied international liguidity acguired through credit arrangements uith financial markets has become preponderant in the irorld economy has far-reaching inplications for the management of internaCional liquidity. Bhe most important is that the adequacy of internatlonal liquidity can no longer be assessed merely on the basis of recorded reserve holdings but must also take into account market perceptions about borrowing countries' "cr edi twor thiness n and the availabili!y of official- sources of financing. A second implication is related to the risk of sudden shifts in the terms and conditions on lrhich international liquidity is made available, olring to the markecrs late recognition of and abrupt response to changes in perceived cr edi twor thiness. A third implication is that, as the najority of developing countries have only limited access. if any, to oarket borrowing, the present syslem does not serve them well' 41. These considerations have an important bearing on lhe place of sDRs as a reserve asse! in the lonq-term evolution of the international ftonetary system. In
analysis: The text appears to be discussing the international banking system and its implications for international liquidity, credit, and the management of economies. It touches on the role of large international banks, the importance of market perceptions, and the limitations of the current system for developing countries. The text's focus is on the economic and financial aspects of international relations, rather than any specific sector or industry.