scispace - formally typeset
Search or ask a question
Topic

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.


Papers
More filters
Journal ArticleDOI
TL;DR: In this paper, the authors investigated the role domestic financial systems play in the effectiveness of capital flow management policies (CFMs) on the risk of over-reliance on debt.
Abstract: This paper investigates the role domestic financial systems play in the effectiveness of capital flow management policies (CFMs) on the risk of over-reliance on debt. Using data from 44 emerging market countries over the period 1995—2008, we investigate the relationship between financial development, CFMs, and the share of debt in external liabilities as the measure of financial stability risks. We find that financial sector development is an important channel for the effectiveness of CFMs, and enhances the impact of different policy measures on the reduction of external debt liabilities. Our results show that CFMs are significantly more effective in curbing debt inflows in a bank-based economy but, to a lesser extent, in a market-based economy. Our findings remain robust to alternative measures of external liability structures, CFMs and financial development, and consideration of potential endogeneity.

9 citations

Dissertation
01 Jan 2016
TL;DR: In this article, the authors investigated the process of financial sector reforms in Tanzania from 1991 to 2011, in what have come to be known as the first and second generations of financial reform.
Abstract: This study investigates about the process of financial sector reforms in Tanzania from 1991, in what have come to be known as the first and second generations of financial sector reforms. From early 1980s up to 1985 Tanzania was in a very serious economic crisis and in urgent need of assistance. From 1985, the new president accepted the conditionalities of the IMF/World Bank and started to embark on Structural Adjustment Programs (SAPs) with a view to stabilize the economy and launch the free market system. In 1991 the Banking and Financial Institutions Act was enacted, which allowed Private Banks, both domestic and foreign, to enter the Tanzanian market - the beginning of the first generation of financial sector reforms. This study was motivated by the question why was it that Tanzania had two generations of financial sector reforms in only two decades? Data were generated mainly from the project documents that designed and implemented those reforms. In addition, semi structured interviews for the policy makers, and the quantitative data from the databases of the IMF/World Bank and the BOT were used. From data analysis, the approach of the first generation of financial sector reforms was not going to yield the desired results, as the basic supporting institutions were still lacking. So the private institutions were limited in the width of offering their services, albeit still making good profit. Credit to the private sector and long term finance were still undeveloped. The SGFSR were designed after the IMF sponsored Financial Sector Assessment Program. Their preoccupation was to create the necessary institutions that were lacking and to improve the quality of the existing institutions that support financial sector development, such as the property rights, contract enforcement mechanism, credit reference bureaus and the framework for long term finance. Already positive signs of development of the financial sector are evident. Great opportunity has come in the area of mobile phone financial services, and regulators need to encourage these innovations in that regard while ensuring the safety of the system.%%%%Die vorliegende Dissertation untersucht den Prozess der Finanzsektorreformen in Tansania seit 1991, bekannt als die erste und zweite Generation der Finanzsektorreformen. Von Beginn der 1980er bis 1985 befand sich Tansania in einer ernsten Wirtschaftskrise und benotigte dringende Unterstutzung. Ab 1985 nahm der neue Prasident die Bedingungen des IWF/Weltbank an und begann mit Strukturanpassungsprogrammen (SAPs), welche die Stabilisierung der Wirtschaft und die Einfuhrung eines Systems der freien Marktwirtschaft zum Ziel hatten. 1991 wurde das Bank und Finanzinstitutionengesetz verabschiedet, welches heimischen sowie internationalen Privatbanken erlaubte, in den tansanischen Markt einzutreten – der Beginn der ersten Generation an Finanzsektorreformen. Diese Arbeit wurde von der Frage motiviert, warum Tansania in nur zwei Jahrzehnten zwei Generationen an Finanzsektorreformen…

9 citations

Journal Article
TL;DR: The authors assesses financial sector development in Latin America, both in the banking system and in the capital markets, showing that those countries which have deeper financial systems are also those with a more efficient financial system.
Abstract: This paper assesses financial sector development in Latin America, both in the banking system and in the capital markets. After a brief review of the explanatory factors and the definitions of financial development found in the literature, Latin American countries are classified in groups of similar characteristics by using cluster analysis - first worldwide and second within the region - in terms of financial depth and per capita income. In the worldwide exercise, virtually all Latin American countries appear in the same cluster, which argues in favor of a regional dimension in financial development. A comparison of the Asian and Eastern European emerging regions shows that Latin America lags behind Asia in terms of financial development and compares slightly unfavorably with Eastern Europe. In the regional cluster exercise, four relatively homogeneous groups of Latin American countries are found. Stylized facts of the four groups’ banking sectors and capital markets show - in line with the results of the more recent economic literature - that those countries which have deeper financial systems are also those with a more efficient financial system. Although no conclusions on causality can be drawn from this review, it argues in favor of a virtuous circle, in terms of financial depth and efficiency, for countries with the most appropriate structure of the financial system.

9 citations

Posted Content
TL;DR: In this paper, a role for Asia's financial sector to play to address the challenges associated with the region's changing demographics and infrastructure investment needs is discussed, and financial deepening could help ease the potential overheating from scaling up infrastructure investment and hence achieve a more balanced growth in the region.
Abstract: There is a role for Asia’s financial sector to play to address the challenges associated with the region’s changing demographics and infrastructure investment needs. Enhancing financial innovation and integration in the region could facilitate intra-regional financial flows and mobilize resources from the aging savers in industrialized Asia to finance infrastructure investment in emerging Asia. Strengthening the financial ties within the region as well as with the global financial markets alongside appropriate prudential frameworks could also help diversify sources of financing and reduce the cost of funding in emerging Asia. Finally, financial deepening could help ease the potential overheating from scaling up infrastructure investment and hence achieve a more balanced growth in the region.

8 citations

Journal ArticleDOI
TL;DR: In this paper, the authors examined the dynamic impact of both bank and market-based financial development on economic growth in Australia during the period 1980 to 2012 using the autoregressive distributed lag bounds approach.
Abstract: This paper has examined the dynamic impact of both bank- and market-based financialdevelopment on economic growth in Australia ? during the period 1980 to 2012. The studyuses the autoregressive distributed lag bounds (ARDL) testing approach to examine thislinkage. Unlike some previous studies, this study uses financial sector development indices tomeasure both bank- and market-based financial development. These indices were computedusing the method of means-removed average. The empirical results of this study show that whilebank-based financial development has a short-run positive impact on economic growth in Australia,market-based financial development has no significant impact on economic growth, both in the shortrun or in the long run. (This abstract was borrowed from another version of this item.)

8 citations


Network Information
Related Topics (5)
Exchange rate
47.2K papers, 944.5K citations
82% related
Foreign direct investment
47.2K papers, 1M citations
82% related
Interest rate
47K papers, 1M citations
80% related
Volatility (finance)
38.2K papers, 979.1K citations
80% related
Monetary policy
57.8K papers, 1.2M citations
80% related
Performance
Metrics
No. of papers in the topic in previous years
YearPapers
202357
202279
202155
202093
201991
201888