Resumen
The process of financial liberalization has created enormous opportunities for profit for banks and other financial institutions, but it has also led to an increased risk to their business and numerous banking and financial crises around the world. For decades, a considerable number of countries have isolated the economy and financial markets, resulting in greater protection from international financial shocks, but also reduced efficiency of local financial markets. In recent years more and more countries have chosen the liberalization of financial flows, reduction of government interference and have opened doors to foreign investors. These changes have led to increased opportunities for economic and financial subjects, but also to large exposures and frequent crisis. The paper considers different aspects of liberalization and analyzes positive and negative aspects of controlled and liberalized markets, as well as the consequences of institutional changes in the markets in the process of liberalization, with the aim to resolve the question of whether liberalization represents a chance or risk to financial markets of developing countries.