Financial sector development

About: Financial sector development is a research topic. Over the lifetime, 1674 publications have been published within this topic receiving 90787 citations.

Completing transition : the main challenges

Abstract: Editorial.- Welcoming Remarks.- The Continuing Challenge of Transition and Convergence.- Completing Transition - The Main Challenges.- Transition Economies and the WTO.- Luncheon Speech.- Transition and Vested Interests.- The Transition - Where Are We? A Commentary on Poland's Experiences.- Slovakia on the Road to a Market Economy in 2000.- The Transition - Where Are We? Experience and Lessons from Armenia.- The Next Challenge in Corporate Restructuring: Activating the Financial Sector.- Corporate Reform in Russia and the Former Soviet Union: The First Ten Years.- The Role of Central Banks in Financial Sector Reform.- The Challenges of Bank Restructuring and Banking Supervision in Transition Economies.- Experience and Perspectives of Financial Sector Development in Central and Eastern Europe.- Fiscal Policy Challenges: Transition Countries and OECD Experiences.- Fiscal Policy Challenges in Transition: Experience in the Czech Republic.- Quality of Public Finances: Value Dimensions of Budget Policy.- Social Sector Reform in Transition Countries.- Fiscal Policy and EU Accession - Transparency and Medium-Term Budgeting.- Monetary Policy Challenges in Transition and Toward Accession.- Monetary Policy in Central and Eastern Europe: The Case for Monetary Strategy Based on Exchange Rates.- Monetary Policy in Central and Eastern Europe: The Case for Direct Inflation Targeting.- Exchange Rate Arrangements in Transition to EMU: Some Arguments in Favor of Early Adoption of the Euro.- Presentation of the Olga Radzyner Award.- Transition Economies and the Multilateral Trading System: Introductory Remarks.- Trade Integration and Changing Trade Structures of Transition Economies.- Transition Economies - Integration into the World Economy.- How to Go Forward in Transition.- Completing Transition: The Case of Hungary.- Transition Experiences and Challenges in Romania.- Russia: Experiences and Challenges.- Concluding Remarks.- List of Participants.

Macroprudential Policy Framework: A Practice Guide

Abstract: This practice guide is primarily intended as a reference and guidance for emerging market economies in their migration to a formal macroprudential policy framework. It relies largely on the existing wisdom, knowledge, and experience and was written with the intention of assisting policy makers (and the World Bank staff working with these authorities) in the implementation of macroprudential policy frameworks in jurisdictions with the following characteristics representative of a typical emerging market and developing economy: 1) a simple and bank-dominated financial system where other financial sector segments are much smaller, but growing; 2) banking supervision function is within the central bank; 3) financial sector regulation/supervision is not integrated; 4) uncertain availability of quality data. A macroprudential policy framework is not a silver bullet for safeguarding financial stability. It is also useful to highlight that a macroprudential policy framework cannot take the place of other public policy frameworks. While pursuing macroprudential policy to build a more resilient financial system, authorities should also take into consideration the significant financial development needs that may exist in their respective jurisdictions. This Practice Guide has been structured in a logical sequence that mirrors implementation. The second and third sections are laid out to clarify and provide some context to the concept of a macroprudential approach to supervision and discuss the institutional framework. The fourth and fifth sections deal with the operational aspects of macroprudential policy framework that are timely detection of systemic risks using early warning systems and addressing the buildup of systemic risks with macroprudential policy instruments.

Financial Intermediation and Late Development: The Case of Meiji Japan, 1868 to 1912

Abstract: Was nineteenth century Japan an example of finance-led growth? Using a new panel dataset of startup firms from the Meiji Period (1868-1912), I test whether financial sector development influenced the emergence of modern industries Results from multiple econometric models suggest that increased financial intermediation, particularly from banks, is associated with greater firm establishment This corresponds with the theory of late development that industrialization requires intermediaries to mobilize and allocate financing The effect is pronounced in the second half of the period and for heavy industries, which may be due to improved institutions and larger capital requirements, respectively

Testing the Validity of the Simultaneous Openness Hypothesis in Nigeria (1990–2015)

Abstract: Since the seminal paper by Rajan and Zingales in 2003, a plethora of studies have been motivated to establish whether the simultaneous opening of trade and capital borders leads to financial sector development. We test whether the simultaneous openness hypothesis is valid for Nigeria, with a focus on the banking sector and stock market. Using annual data from 1990 to 2015 and an instrumental variable regression estimation technique, we show that the simultaneous increase of trade and financial openness limits banking sector and stock market development. Thus, there is no empirical evidence to validate the simultaneous openness hypothesis in Nigeria. It also shows that trade openness is more beneficial for banking sector and stock market development in Nigeria than financial openness.

Financial Sector Development, Economic Growth and Poverty Reduction: New Evidence from Nigeria

Abstract: There is a common view that a well developed financial system will usher economic growth and further reduce the level of poverty. In late years the automaticity of this relationship in poor states such as Nigeria has been an area of considerable argument. This study attempts to examine this presuppose causal relationship between financial sector development, economic growth and poverty reduction in Nigeria. The study uses Autoregressive Distributed Lag model (ARDL) and Toda and Yamamoto No causality test, using a time series data covering the period of 1970-2011. The study includes poverty into the ongoing competing finance growth nexus hypothesis, in order to ascertain whether the poor segment of the Nigerian society have access to financial resources and also fully participate in the economic growth process in the country. Empirical results of the study reveal that financial sector development does not cause poverty reduction. This implies, increased in the supply of loan able funds due to financial sector development is not enough to ensure poverty reduction. Certain measures are important. Therefore, the results reveal, that economic growth causes financial sector growth. Implies that economic growth lead and financial sector follow. This implies that for financial sector development, economic growth is necessary, even though not sufficient for poverty reduction.