Global banks first expanded into emerging markets to bring greater efficiency and foster competition but, with the effects of the financial crisis, they are now pulling back.

Read: Emerging markets have room to grow

Faced with the need to deleverage and meet higher capital requirements, many are working to reduce their exposure to emerging markets, prompting damaging credit crunches in the process.

Policymakers in emerging markets must now take action, with global finance being redesigned in order to avoid a repetition of one of the worst banking crises in history.