Benchmarking Financial Systems : Introducing the Financial Possibility Frontier

Across the world, supply for financial services rarely matches the demand, given multiple market frictions. This paper discusses the concept of the financial possibilities frontier as a constrained optimum to categorize different problems of shallow financial markets or unsustainable expansion. The...

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Main Authors:	Beck, Thorsten, Feyen, Erik
Language:	en_US
Published:	World Bank, Washington, D.C. 2013
Subjects:	accounting agency problem agency problems arbitrage asset positions bailout bank credit bank lending banking crises banking system banking systems bankruptcy boom-bust cycle borrower branch network capital flows capital inflows capital market capital market development capital markets checking accounts collateral collateral requirements consumer protection contract enforcement contractual savings contractual savings institutions coordination failures corporate bond corporate bond markets corporate bonds credit assessment credit expansion credit guarantee credit increase credit information credit institutions credit line credit market credit ratings credit Source creditor creditor rights creditors currency crises debt debt securities default risk demand for credit deposit deposit mobilization deposit services Deposits developing countries dummy variables economic development enforceability enforceability of contracts enterprise financing equity markets exchange rate exporter exporters external finance external funding financial crises financial crisis Financial development financial fragility financial information financial instability financial institution financial institutions financial instruments financial liberalization financial markets financial sector development financial sector indicators financial stability financial statements financial structure financial system Financial Systems financing obstacles fiscal policy fixed assets foreign bank foreign bank entry foreign currency foreign currency debt formal loan globalization government bond government bond market government interventions government ownership government policies government securities gross domestic product income flows income from bonds income level income levels income volatility indebtedness inflation information asymmetries institutional development insurance Insurance companies insurance policies interest rate interest rates International Bank international capital international capital markets international financial integration investment opportunities investment projects investor protection lack of competition lack of credit legal rights lending interest rate liability liability side life insurance life insurance premiums liquidity loan loan applications loan default local currencies local currency long-term finance long-term investment long-term investors macroeconomic conditions macroeconomic instability macroeconomic stability macroeconomic uncertainty market discipline market failures market infrastructure market participants market players market size market structure Market Turnover maturities maturity micro data micro-data micro-enterprises monetary policy monetary stability Mortgage Mortgage finance mortgages mutual fund mutual fund assets mutual funds non-performing loans offshore center offshore centers opportunity costs partial credit payment services payment system payment systems pension pension fund pension fund assets pension funds political stability Private Credit Private Debt private equity private lenders Public Debt Public Debt Securities regulatory barriers regulatory constraints regulatory framework regulatory frameworks remittance return rights of creditors risk diversification risk management risk management services savings services securities settlement settlement infrastructure share of investment Stock Market tax tax policies tax rate total debt transaction transaction costs transactions costs transition countries transition country transition economies transition economy transparency Turnover withholding tax
Online Access:	http://hdl.handle.net/10986/16319

id	okr-10986-16319
recordtype	oai_dc
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	accounting agency problem agency problems arbitrage asset positions bailout bank credit bank lending banking crises banking system banking systems bankruptcy boom-bust cycle borrower branch network capital flows capital inflows capital market capital market development capital markets checking accounts collateral collateral requirements consumer protection contract enforcement contractual savings contractual savings institutions coordination failures corporate bond corporate bond markets corporate bonds credit assessment credit expansion credit guarantee credit increase credit information credit institutions credit line credit market credit ratings credit Source creditor creditor rights creditors currency crises debt debt securities default risk demand for credit deposit deposit mobilization deposit services Deposits developing countries dummy variables economic development enforceability enforceability of contracts enterprise financing equity markets exchange rate exporter exporters external finance external funding financial crises financial crisis Financial development financial fragility financial information financial instability financial institution financial institutions financial instruments financial liberalization financial markets financial sector development financial sector indicators financial stability financial statements financial structure financial system Financial Systems financing obstacles fiscal policy fixed assets foreign bank foreign bank entry foreign currency foreign currency debt formal loan globalization government bond government bond market government interventions government ownership government policies government securities gross domestic product income flows income from bonds income level income levels income volatility indebtedness inflation information asymmetries institutional development insurance Insurance companies insurance policies interest rate interest rates International Bank international capital international capital markets international financial integration investment opportunities investment projects investor protection lack of competition lack of credit legal rights lending interest rate liability liability side life insurance life insurance premiums liquidity loan loan applications loan default local currencies local currency long-term finance long-term investment long-term investors macroeconomic conditions macroeconomic instability macroeconomic stability macroeconomic uncertainty market discipline market failures market infrastructure market participants market players market size market structure Market Turnover maturities maturity micro data micro-data micro-enterprises monetary policy monetary stability Mortgage Mortgage finance mortgages mutual fund mutual fund assets mutual funds non-performing loans offshore center offshore centers opportunity costs partial credit payment services payment system payment systems pension pension fund pension fund assets pension funds political stability Private Credit Private Debt private equity private lenders Public Debt Public Debt Securities regulatory barriers regulatory constraints regulatory framework regulatory frameworks remittance return rights of creditors risk diversification risk management risk management services savings services securities settlement settlement infrastructure share of investment Stock Market tax tax policies tax rate total debt transaction transaction costs transactions costs transition countries transition country transition economies transition economy transparency Turnover withholding tax
spellingShingle	accounting agency problem agency problems arbitrage asset positions bailout bank credit bank lending banking crises banking system banking systems bankruptcy boom-bust cycle borrower branch network capital flows capital inflows capital market capital market development capital markets checking accounts collateral collateral requirements consumer protection contract enforcement contractual savings contractual savings institutions coordination failures corporate bond corporate bond markets corporate bonds credit assessment credit expansion credit guarantee credit increase credit information credit institutions credit line credit market credit ratings credit Source creditor creditor rights creditors currency crises debt debt securities default risk demand for credit deposit deposit mobilization deposit services Deposits developing countries dummy variables economic development enforceability enforceability of contracts enterprise financing equity markets exchange rate exporter exporters external finance external funding financial crises financial crisis Financial development financial fragility financial information financial instability financial institution financial institutions financial instruments financial liberalization financial markets financial sector development financial sector indicators financial stability financial statements financial structure financial system Financial Systems financing obstacles fiscal policy fixed assets foreign bank foreign bank entry foreign currency foreign currency debt formal loan globalization government bond government bond market government interventions government ownership government policies government securities gross domestic product income flows income from bonds income level income levels income volatility indebtedness inflation information asymmetries institutional development insurance Insurance companies insurance policies interest rate interest rates International Bank international capital international capital markets international financial integration investment opportunities investment projects investor protection lack of competition lack of credit legal rights lending interest rate liability liability side life insurance life insurance premiums liquidity loan loan applications loan default local currencies local currency long-term finance long-term investment long-term investors macroeconomic conditions macroeconomic instability macroeconomic stability macroeconomic uncertainty market discipline market failures market infrastructure market participants market players market size market structure Market Turnover maturities maturity micro data micro-data micro-enterprises monetary policy monetary stability Mortgage Mortgage finance mortgages mutual fund mutual fund assets mutual funds non-performing loans offshore center offshore centers opportunity costs partial credit payment services payment system payment systems pension pension fund pension fund assets pension funds political stability Private Credit Private Debt private equity private lenders Public Debt Public Debt Securities regulatory barriers regulatory constraints regulatory framework regulatory frameworks remittance return rights of creditors risk diversification risk management risk management services savings services securities settlement settlement infrastructure share of investment Stock Market tax tax policies tax rate total debt transaction transaction costs transactions costs transition countries transition country transition economies transition economy transparency Turnover withholding tax Beck, Thorsten Feyen, Erik Benchmarking Financial Systems : Introducing the Financial Possibility Frontier
relation	Policy Research Working Paper;No.6615
description	Across the world, supply for financial services rarely matches the demand, given multiple market frictions. This paper discusses the concept of the financial possibilities frontier as a constrained optimum to categorize different problems of shallow financial markets or unsustainable expansion. The paper offers three examples of how to use different data sources to apply the frontier concept to assess the state of financial systems.
author	Beck, Thorsten Feyen, Erik
author_facet	Beck, Thorsten Feyen, Erik
author_sort	Beck, Thorsten
title	Benchmarking Financial Systems : Introducing the Financial Possibility Frontier
title_short	Benchmarking Financial Systems : Introducing the Financial Possibility Frontier
title_full	Benchmarking Financial Systems : Introducing the Financial Possibility Frontier
title_fullStr	Benchmarking Financial Systems : Introducing the Financial Possibility Frontier
title_full_unstemmed	Benchmarking Financial Systems : Introducing the Financial Possibility Frontier
title_sort	benchmarking financial systems : introducing the financial possibility frontier
publisher	World Bank, Washington, D.C.
publishDate	2013
url	http://hdl.handle.net/10986/16319
_version_	1764432831631589376
spelling	okr-10986-163192021-04-23T14:03:28Z Benchmarking Financial Systems : Introducing the Financial Possibility Frontier Beck, Thorsten Feyen, Erik accounting agency problem agency problems arbitrage asset positions bailout bank credit bank lending banking crises banking system banking systems bankruptcy boom-bust cycle borrower branch network capital flows capital inflows capital market capital market development capital markets checking accounts collateral collateral requirements consumer protection contract enforcement contractual savings contractual savings institutions coordination failures corporate bond corporate bond markets corporate bonds credit assessment credit expansion credit guarantee credit increase credit information credit institutions credit line credit market credit ratings credit Source creditor creditor rights creditors currency crises debt debt securities default risk demand for credit deposit deposit mobilization deposit services Deposits developing countries dummy variables economic development enforceability enforceability of contracts enterprise financing equity markets exchange rate exporter exporters external finance external funding financial crises financial crisis Financial development financial fragility financial information financial instability financial institution financial institutions financial instruments financial liberalization financial markets financial sector development financial sector indicators financial stability financial statements financial structure financial system Financial Systems financing obstacles fiscal policy fixed assets foreign bank foreign bank entry foreign currency foreign currency debt formal loan globalization government bond government bond market government interventions government ownership government policies government securities gross domestic product income flows income from bonds income level income levels income volatility indebtedness inflation information asymmetries institutional development insurance Insurance companies insurance policies interest rate interest rates International Bank international capital international capital markets international financial integration investment opportunities investment projects investor protection lack of competition lack of credit legal rights lending interest rate liability liability side life insurance life insurance premiums liquidity loan loan applications loan default local currencies local currency long-term finance long-term investment long-term investors macroeconomic conditions macroeconomic instability macroeconomic stability macroeconomic uncertainty market discipline market failures market infrastructure market participants market players market size market structure Market Turnover maturities maturity micro data micro-data micro-enterprises monetary policy monetary stability Mortgage Mortgage finance mortgages mutual fund mutual fund assets mutual funds non-performing loans offshore center offshore centers opportunity costs partial credit payment services payment system payment systems pension pension fund pension fund assets pension funds political stability Private Credit Private Debt private equity private lenders Public Debt Public Debt Securities regulatory barriers regulatory constraints regulatory framework regulatory frameworks remittance return rights of creditors risk diversification risk management risk management services savings services securities settlement settlement infrastructure share of investment Stock Market tax tax policies tax rate total debt transaction transaction costs transactions costs transition countries transition country transition economies transition economy transparency Turnover withholding tax Across the world, supply for financial services rarely matches the demand, given multiple market frictions. This paper discusses the concept of the financial possibilities frontier as a constrained optimum to categorize different problems of shallow financial markets or unsustainable expansion. The paper offers three examples of how to use different data sources to apply the frontier concept to assess the state of financial systems. 2013-11-26T16:19:31Z 2013-11-26T16:19:31Z 2013-09 http://hdl.handle.net/10986/16319 en_US Policy Research Working Paper;No.6615 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C.

Benchmarking Financial Systems : Introducing the Financial Possibility Frontier

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