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Cross-border banking activity within the Asia-Pacific region has intensified since the Great Financial Crisis of 2007− 09. In the years leading up to the crisis, much of the cross-border activity in the region had been driven by dollar credit intermediated largely by European banks. In the wake of the crisis, this global intermediation lost much of its European leg. Banks from within the region stepped in and soon came to dominate cross-border activity. Adding impetus to the intraregional trend, the ASEAN member governments have adopted a regional banking integration framework. Mindful of the lessons of European banking integration, the banking authorities in the region are seeking to balance the efficiency gains of regional integration against the risks of financial instability.