Contractual Savings in Countries with a Small Financial Sector
Countries with small financial systems are generally small economies with a reduced dimension of institutional relationships, a greater concentration of wealth, and a relatively less independent civil service. These characteristics facilitate conce...
| Main Authors: | , , |
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, D.C.
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2002/05/1781148/contractual-savings-countries-small-financial-sector http://hdl.handle.net/10986/14289 |
| Summary: | Countries with small financial systems
are generally small economies with a reduced dimension of
institutional relationships, a greater concentration of
wealth, and a relatively less independent civil service.
These characteristics facilitate concentration of functions
and, more generally, weak governance. Only small economies
with a relatively high level of per capita income, minimum
core of sound banks and insurance companies, sound and
credible macroeconomic policies, and open capital accounts
can benefit from the development of contractual savings.
This can increase the options to obtain sound coverage
against contingencies, increase the supply of long term
savings, promote financial deepening, and improve financial
risk management. |
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