Credit turmoil has helped emerging markets

"Overall, the shocks in the mature economies' markets have at least until now led to a relative repricing of risk, favouring some countries and sectors, especially emerging markets," Josef Ackermann said in a speech in Dubai.

Other countries with heavy exposure to US consumer credit had been hit, Ackermann said at a meeting of CEOs organised by the Washington-based Institute of International Finance (IIF).

Emerging markets were supported by strong commodity prices and growing domestic investment, he said.

"Unlike many previous crises, the shocks experienced in Western markets have not cascaded down through the global credit, foreign exchange and money markets, although we have seen some significant corrections in the equity markets," he said.

Despite the subprime crisis -- the credit turmoil stemming from defaults in the US market for risky mortgages -- net private capital flows to emerging markets grew by about 20 per cent to a record $680 billion in 2007, he said, citing IIF figures. (Reuters)