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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.


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TL;DR: In this paper, the authors discuss and shed some light on the Arab countries' financial sector institutional reform and their implications for economic development, and emphasize the notion that strong and effective institutional reforms are very important ingredients for the success of financial sector reforms.
Abstract: Arab countries like other developing countries have embarked on financial sector reforms since the early 1990s. The purpose of this study is to discuss and shed some light on the Arab countries’ financial sector institutional reform and their implications for economic development. The Arab financial sector reforms experience demonstrated that institutions have a vital role in and have positively influenced the process of Arab financial sector liberalization. It also emphasized the notion that strong and effective institutional reforms are very important ingredients for the success of financial sector reforms. For the most part, financial sector reforms have already brought about significant improvement in monetary and credit aggregates in many Arab countries. Financial sector reform has certainly had a noticeable impact on the cost of intermediation: real interest rates and gross interest margins. However, there is room for even more improvement in the coming years as competition enhancing measures and administrative costs reduction interventions are adopted.

3 citations

Posted Content
Hyun E. Kim1
TL;DR: Kim et al. as discussed by the authors investigated whether the credit channel is a key monetary transmission mechanism in the Republic of Korea, especially after its recent financial crisis, and found that a substantial excess demand for bank loans in the wake of the crisis was caused essentially by a capital-induced bank credit crunch rather than by a weak demand for loans.
Abstract: A marked decline in bank lending after the recent financial crisis in the Republic of Korea amplified the real effects of the tightened monetary policy implemented in response to the crisis. A substantial excess demand for bank loans in the wake of the crisis was caused essentially by a capital-induced bank credit crunch rather than by a weak demand for loans. This finding reveals compelling evidence of the importance of the credit channel after the crisis. Kim investigates whether the credit channel is a key monetary transmission mechanism in the Republic of Korea, especially after its recent financial crisis. To identify the existence of a distinctive credit channel (especially the bank lending channel), he applies two empirical tests to both aggregate financial data and disaggregated bank balance sheet data. As a more definitive analysis of the role of the credit channel, he estimates a disequilibrium model of the bank loan market, specifying separate loan demand and supply equations to characterize the credit crunch and identify its intensity in the wake of the crisis. He finds convincing evidence of the importance of the credit channel in the aftermath of the crisis. Bank lending plays a significant independent role in amplifying the real effects of the tightened monetary policy implemented in response to the crisis. There is strong evidence to suggest a substantial excess demand for bank loans following the crisis. This excess demand was caused by a sharp decline in loan supply largely attributable to pervasive and stringent bank capital regulation (a capital-induced bank credit crunch), rather than by weak demand for loans. This paper - a product of the Financial Sector Development Unit, East Asia and Pacific Sector Units - was presented at the international conference on Exchange Rate Stability and Currency Board Economics on November 18-29, 1998, in Hong Kong. The author may be contacted at hkim8@worldbank.org.

3 citations

Book ChapterDOI
01 Jan 2014
TL;DR: The most important organizational innovation in finance was the bank as discussed by the authors, and there is a strong correlation between a country's per capita income and financial sector development, judged by such measures as bank deposits and holding of securities.
Abstract: Through a combination of external forces and its inner dynamics financial capitalism has been transformed over the last 250 years. Central to financial capitalism is financial innovation. It is through innovation that financial capitalism responds to external challenges and opportunities while generating its inner dynamics. The most important organizational innovation in finance was the bank. A bank is a financial intermediary whereas a moneylender is a capitalist. Almost from the inception of financial innovation in products, markets, and organization, attempts were made to minimize the risks that they posed for all users. Regulatory innovation was also found in financial markets, though much again was left to the reputation of the participants. Evidence certainly exists to suggest there is a strong correlation between a country's per capita income and financial sector development, judged by such measures as bank deposits and holding of securities.

3 citations

Journal ArticleDOI
TL;DR: In this article, the authors review what the Moon administration's income-led growth has achieved and has not, as of the end of 2019 (due to the data availability), and the reader is advised to keep in mind that the administration had been in two and a half years into the 5-year term by 2019, and the growth effect may take a longer time to realize.
Abstract: Income-led growth is at the core of the Moon Jae-in administration’s economic policy. It aims to build an inclusive economy by enhancing the capacity of household consumption and improving distribution, through a more active role of the state and social agreements. This report laregely reviews what the Moon administration’s income-led growth has achieved and has not, as of the end of 2019 (due to the data availability). The reader is advised to keep in mind that the administration had been in two and a half years into the 5-year term by the end of 2019, and the growth effect may take a longer time to realize. The main goal of this interim review is to share the rare case of the income-led growth policies with the policy research circles abroad.

3 citations

Journal ArticleDOI
TL;DR: In this paper, the authors measure the effect of governance on sovereign creditworthiness, as measured by sovereign credit ratings, and find that improving governance increases the likelihood of a top rating more for lower income countries than for higher income countries.
Abstract: We measure the effect of governance on sovereign creditworthiness, as measured by sovereign credit ratings Governance may affect the government's ability to raise tax revenue to service its debt, with poor enough governance leading to insolvency Data for 1996-2005 indicate that countries with better governance have higher probabilities of getting top ratings and that improving governance increases the likelihood of a top rating more for lower income countries than for higher income countries Governance thus plays a role in reducing the likelihood of default, thereby facilitating countries' access to international credit markets and their financial sector development

3 citations


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Performance
Metrics
No. of papers in the topic in previous years
YearPapers
202357
202279
202155
202093
201991
201888