Banks
were given much greater leeway in their lending decisions, and stock and bond markets began to
grow and develop. Importantly, banks and financial institutions had new freedoms to raise funds
offshore. New institutions were developed, such as the Bangkok International Banking Facility
(BIBF) that were designed to offer new financial services and attract investment, and were
actively encouraged to borrow offshore to finance their activities. This combination led to a rapid
expansion in both offshore borrowing and domestic lending, with a resulting investment boom.