This analysis of international capital markets is based on discussions with commercial and investment banks, securities firms, insurance companies, pension funds, stock exchanges, regulatory authorities, finance ministries, credit rating agencies and the Bank for International Settlement. It reflects information available up to the end of May 2001. The chapter headings are: developments and trends in mature capital markets; emerging market financing; the changing structure of the Major government securities markets; financial sector consolidation in emerging markets; staff appraisal