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 published on a yearly basis
Papers
More filters
••
TL;DR: In this article, a scheme for the credit rating of SMEs by employing two statistical analysis techniques, principal components analysis and cluster analysis, and applying various financial variables to 1,363 SMEs in Asia.
Abstract: In Asia, small and medium-sized enterprises (SMEs) account for a major share of employment and dominate the economy. Asian economies are often characterized as having bank-dominated financial systems and underdeveloped capital markets, in particular venture capital markets. Hence, looking for new methods of financing for SMEs is crucial. Hometown investment trust funds (HIT) are a new form of financial intermediation that has now been adopted as a national strategy in Japan. In this paper, we explain the importance of SMEs in Asia and describe about HITs. We then provide a scheme for the credit rating of SMEs by employing two statistical analysis techniques, principal components analysis and cluster analysis, and applying various financial variables to 1,363 SMEs in Asia. Adoption of this comprehensive and efficient method would enable banks to group SME customers based on financial health, adjust interest rates on loans, and set lending ceilings for each group. Moreover, this method is applicable to HITs around the world.
27 citations
••
TL;DR: The authors assesses the actual and potential role of local financial systems for 24 African countries in financing infrastructure and concludes that further development and more appropriate regulation of local institutional investors would help them realize their potential as financing sources, for which they are better suited than local banks.
Abstract: With the exception of South Africa, local financial markets in sub-Saharan Africa remain underdeveloped and small, with a particular dearth of financing with maturity terms commensurate with the medium- to long-term horizons of infrastructure projects. But as financial market reforms gather momentum, there is growing awareness of the need to tap local and regional sources. Drawing on a comprehensive new database constructed for the purpose of this research, the paper assesses the actual and potential role of local financial systems for 24 African countries in financing infrastructure. The paper concludes that further development and more appropriate regulation of local institutional investors would help them realize their potential as financing sources, for which they are better suited than local banks because their liabilities would better match the longer terms of infrastructure projects. There are clear signs of positive change: private pension providers are emerging in Africa, there is a shift from defined benefit toward defined contribution plans, and African institutional investors have begun taking a more diversified portfolio approach in asset allocation. Although capital markets remain underdeveloped, new issuers in infrastructure sectors-particularly of corporate bonds-are coming to market in several countries, in some cases constituting the debut issue. More than half of the corporate bonds listed at end-2006 on these countries' markets were by companies in infrastructure sectors. More cross-border listings and investment within the region-in both corporate bonds and equity issues-including by local institutional investors, could help overcome local capital markets' impediments and may hold significant promise for financing cross-country infrastructure projects.
27 citations
••
TL;DR: In this article, the authors used cross-sectional and generalized method of moments (GMM) dynamic panel estimation techniques to test the effect of cross-border financial transactions on financial sector development for a sample of 90 developed and developing countries over the period 1980-2009.
27 citations
••
TL;DR: In this article, the authors tried to understand the trends and determinants of economic growth in Indian states in the post-reform period and concluded that there is a long run relationship between financial variables and the growth.
Abstract: The present study tries to understand the trends and determinants of economic growth in the Indian states in the post-reform period. For this, it considers the role of financial sector development since this sector has seen substantial reform measures. With the help of panel time series models, the study concludes that there is a long run relationship between financial variables and the growth. The results also show, although it is necessary to have development in terms of increase in number of bank branches, it is the extent of bank business which is more important in the growth process at the state level. In other words, financial sector reform that improves financial intermediation could have substantial growth impact in state output and expansion of bank branches could just be a necessary but not a sufficient condition when we look from the macroeconomic growth perspective. Further, as empirical results show that there is a bidirectional causation between growth and finance, policy measures are needed to enhance access that ensures positive and stable relationship between these two.
27 citations
••
TL;DR: In this paper, the authors investigated the impact of financial sector development on GDP growth in the four middle-income countries of South Asia over the period of 1990-2016 using pooled mean g...
Abstract: The present study intends to investigate the impact of financial sector development on GDP growth in the four middle-income countries of South Asia over the period of 1990–2016. Using pooled mean g...
27 citations