Toward Transparency : New Approaches and Their Application to Financial Markets
The Asian financial crisis in the late 1990s not only highlighted the welfare consequences of transparency in the financial sector but also linked this relatively narrow problem to the broader context of transparency in governance. It has been obse...
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| Format: | Journal Article |
| Language: | English en_US |
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Washington, DC: World Bank
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2001/03/17580032/toward-transparency-new-approaches-application-financial-markets http://hdl.handle.net/10986/17128 |
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okr-10986-17128 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCESS TO INFORMATION ACCOUNTABILITY ACCOUNTING ACCOUNTING PRACTICES ACCOUNTING STANDARDS ACCOUNTING SYSTEMS ADVERSE SELECTION ARBITRAGE AUDITING AUDITORS AUDITS BAILOUT BAILOUTS BALANCE SHEET BANK ACTIVITIES BANK FAILURE BANK FAILURES BANK FOR INTERNATIONAL SETTLEMENTS BANK LOAN BANK LOAN GUARANTEES BANK OF ENGLAND BANK OFFICERS BANK PANICS BANK POLICIES BANK RATINGS BANK RUNS BANK SOLVENCY BANK TRANSPARENCY BANKING CRISES BANKING CRISIS BANKING PRACTICES BANKING SUPERVISION BANKING SYSTEMS BANKRUPTCY BASLE ACCORD BENEFICIARIES BONDS BORROWING CAPITAL ADEQUACY CAPITAL CONTROLS CAPITAL MARKETS CAPITAL REQUIREMENTS CENTRAL BANK CENTRAL BANKING CENTRAL BANKS CONFIDENTIALITY CONNECTED LENDING CONTAGION CONTINGENT LIABILITIES CORPORATE DISCLOSURE CREDIBILITY CREDIT AGENCIES CREDIT APPROVAL CREDIT EXPANSION CREDIT RATIONING CREDIT-RATING AGENCIES CREDITORS CREDITWORTHINESS DATA QUALITY DEGREE OF RISK DEPOSIT DEPOSIT INSURANCE DEPOSIT RATES DEPOSITORS DEPOSITS DERIVATIVE DERIVATIVE INSTRUMENTS DERIVATIVES DEVALUATION DEVELOPING COUNTRIES DISCLOSURE OF INFORMATION DISCLOSURE REQUIREMENTS DISCLOSURE STANDARDS DISSEMINATION OF INFORMATION DIVIDENDS DOMESTIC BANKS ECONOMIC CONDITIONS ECONOMIC COSTS ECONOMIC CRISES ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC STABILITY EMERGING ECONOMIES ENFORCEMENT MECHANISMS EXTERNALITIES FEDERAL RESERVE FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL INFORMATION FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL INTEGRATION FINANCIAL LIBERALIZATION FINANCIAL MARKET FINANCIAL MARKET INFORMATION FINANCIAL MARKETS FINANCIAL REFORM FINANCIAL RISK FINANCIAL SAFETY NETS FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL STUDIES FINANCIAL SYSTEM FINANCIAL SYSTEMS FINANCIAL TRANSACTIONS FISCAL POLICY FLOW OF INFORMATION FOREIGN BANKS FOREIGN CURRENCY FOREIGN CURRENCY DEBT FOREIGN INVESTORS FULL DISCLOSURE GLOBAL FINANCIAL INTEGRATION GLOBAL FINANCIAL SYSTEM GLOBALIZATION GOOD GOVERNANCE GOVERNMENT POLICIES GOVERNMENT POLICY GOVERNMENT REGULATION HEDGE FUNDS INDUSTRIAL COUNTRIES INFLATION INFORMATION ASYMMETRIES INFORMATION DISCLOSURE INFORMATION SHARING INFORMATION SYSTEMS INNOVATION INNOVATIVE FINANCING INSTITUTIONAL DEVELOPMENT INSTITUTIONAL INFRASTRUCTURE INSTITUTIONAL INVESTORS INTEREST RATES INTERNATIONAL BANK INTERNATIONAL BANKING INTERNATIONAL ECONOMICS INTERNATIONAL MARKET INTERNATIONAL MARKETS INTERNATIONAL SETTLEMENTS INVESTMENT ACTIVITY LACK OF TRANSPARENCY LAW ENFORCEMENT LAWS LEGAL ENVIRONMENTS LENDERS LEVY LIBERALIZATION OF FINANCIAL MARKETS LIMITED LIABILITY LIQUIDITY LIQUIDITY CRISES LIQUIDITY POSITION LOAN LOAN CLASSIFICATION LOAN CONTRACTS LOAN GUARANTEES LOCAL CURRENCY MACROECONOMIC POLICY MANDATES MARGINAL COST MARKET DISCIPLINE MARKET ENVIRONMENT MARKET EXPECTATIONS MARKET INFORMATION MARKET STABILITY MATURITY MONETARY FUND MONETARY POLICY MORAL HAZARD NATIONAL SECURITY NONPERFORMING LOANS OUTPUT PENALTIES PORTFOLIOS PRICE VOLATILITY PRIVACY PRIVATE CREDIT PROBLEM LOANS PROFITABILITY PROPERTY RIGHTS PUBLIC POLICY PUBLIC SERVICES REGULATORY ENVIRONMENT REGULATORY ENVIRONMENTS REGULATORY FORBEARANCE REGULATORY SYSTEM RENTS REPUTATION RESERVES RESOURCE ALLOCATION RETURNS RISK PROFILES RULE OF LAW SAFETY SAFETY NET SAFETY NETS SAVINGS SCANDALS SELF-REGULATION SHARE PRICE SHAREHOLDERS SOCIAL VALUE SOLVENCY STOCK EXCHANGE STOCK MARKET STOCK MARKET VOLATILITY STOCK RETURN TAX TAX SYSTEMS TECHNICAL ASSISTANCE TRANSACTION TRANSACTION COSTS TRANSPARENCY UNEMPLOYMENT VALUATION VALUE OF ASSETS WARRANTS WEAK ENFORCEMENT WORLD FINANCIAL MARKETS |
| spellingShingle |
ACCESS TO INFORMATION ACCOUNTABILITY ACCOUNTING ACCOUNTING PRACTICES ACCOUNTING STANDARDS ACCOUNTING SYSTEMS ADVERSE SELECTION ARBITRAGE AUDITING AUDITORS AUDITS BAILOUT BAILOUTS BALANCE SHEET BANK ACTIVITIES BANK FAILURE BANK FAILURES BANK FOR INTERNATIONAL SETTLEMENTS BANK LOAN BANK LOAN GUARANTEES BANK OF ENGLAND BANK OFFICERS BANK PANICS BANK POLICIES BANK RATINGS BANK RUNS BANK SOLVENCY BANK TRANSPARENCY BANKING CRISES BANKING CRISIS BANKING PRACTICES BANKING SUPERVISION BANKING SYSTEMS BANKRUPTCY BASLE ACCORD BENEFICIARIES BONDS BORROWING CAPITAL ADEQUACY CAPITAL CONTROLS CAPITAL MARKETS CAPITAL REQUIREMENTS CENTRAL BANK CENTRAL BANKING CENTRAL BANKS CONFIDENTIALITY CONNECTED LENDING CONTAGION CONTINGENT LIABILITIES CORPORATE DISCLOSURE CREDIBILITY CREDIT AGENCIES CREDIT APPROVAL CREDIT EXPANSION CREDIT RATIONING CREDIT-RATING AGENCIES CREDITORS CREDITWORTHINESS DATA QUALITY DEGREE OF RISK DEPOSIT DEPOSIT INSURANCE DEPOSIT RATES DEPOSITORS DEPOSITS DERIVATIVE DERIVATIVE INSTRUMENTS DERIVATIVES DEVALUATION DEVELOPING COUNTRIES DISCLOSURE OF INFORMATION DISCLOSURE REQUIREMENTS DISCLOSURE STANDARDS DISSEMINATION OF INFORMATION DIVIDENDS DOMESTIC BANKS ECONOMIC CONDITIONS ECONOMIC COSTS ECONOMIC CRISES ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC STABILITY EMERGING ECONOMIES ENFORCEMENT MECHANISMS EXTERNALITIES FEDERAL RESERVE FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL INFORMATION FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL INTEGRATION FINANCIAL LIBERALIZATION FINANCIAL MARKET FINANCIAL MARKET INFORMATION FINANCIAL MARKETS FINANCIAL REFORM FINANCIAL RISK FINANCIAL SAFETY NETS FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL STUDIES FINANCIAL SYSTEM FINANCIAL SYSTEMS FINANCIAL TRANSACTIONS FISCAL POLICY FLOW OF INFORMATION FOREIGN BANKS FOREIGN CURRENCY FOREIGN CURRENCY DEBT FOREIGN INVESTORS FULL DISCLOSURE GLOBAL FINANCIAL INTEGRATION GLOBAL FINANCIAL SYSTEM GLOBALIZATION GOOD GOVERNANCE GOVERNMENT POLICIES GOVERNMENT POLICY GOVERNMENT REGULATION HEDGE FUNDS INDUSTRIAL COUNTRIES INFLATION INFORMATION ASYMMETRIES INFORMATION DISCLOSURE INFORMATION SHARING INFORMATION SYSTEMS INNOVATION INNOVATIVE FINANCING INSTITUTIONAL DEVELOPMENT INSTITUTIONAL INFRASTRUCTURE INSTITUTIONAL INVESTORS INTEREST RATES INTERNATIONAL BANK INTERNATIONAL BANKING INTERNATIONAL ECONOMICS INTERNATIONAL MARKET INTERNATIONAL MARKETS INTERNATIONAL SETTLEMENTS INVESTMENT ACTIVITY LACK OF TRANSPARENCY LAW ENFORCEMENT LAWS LEGAL ENVIRONMENTS LENDERS LEVY LIBERALIZATION OF FINANCIAL MARKETS LIMITED LIABILITY LIQUIDITY LIQUIDITY CRISES LIQUIDITY POSITION LOAN LOAN CLASSIFICATION LOAN CONTRACTS LOAN GUARANTEES LOCAL CURRENCY MACROECONOMIC POLICY MANDATES MARGINAL COST MARKET DISCIPLINE MARKET ENVIRONMENT MARKET EXPECTATIONS MARKET INFORMATION MARKET STABILITY MATURITY MONETARY FUND MONETARY POLICY MORAL HAZARD NATIONAL SECURITY NONPERFORMING LOANS OUTPUT PENALTIES PORTFOLIOS PRICE VOLATILITY PRIVACY PRIVATE CREDIT PROBLEM LOANS PROFITABILITY PROPERTY RIGHTS PUBLIC POLICY PUBLIC SERVICES REGULATORY ENVIRONMENT REGULATORY ENVIRONMENTS REGULATORY FORBEARANCE REGULATORY SYSTEM RENTS REPUTATION RESERVES RESOURCE ALLOCATION RETURNS RISK PROFILES RULE OF LAW SAFETY SAFETY NET SAFETY NETS SAVINGS SCANDALS SELF-REGULATION SHARE PRICE SHAREHOLDERS SOCIAL VALUE SOLVENCY STOCK EXCHANGE STOCK MARKET STOCK MARKET VOLATILITY STOCK RETURN TAX TAX SYSTEMS TECHNICAL ASSISTANCE TRANSACTION TRANSACTION COSTS TRANSPARENCY UNEMPLOYMENT VALUATION VALUE OF ASSETS WARRANTS WEAK ENFORCEMENT WORLD FINANCIAL MARKETS Vishwanath, Tara Kaufmann, Daniel Toward Transparency : New Approaches and Their Application to Financial Markets |
| description |
The Asian financial crisis in the late
1990s not only highlighted the welfare consequences of
transparency in the financial sector but also linked this
relatively narrow problem to the broader context of
transparency in governance. It has been observed that
objections to transparency, often on flimsy pretexts, are
common even in industrialized countries. This article argues
that transparency is indispensable to the financial sector
and describes its desirable characteristics: access,
timeliness, relevance, and quality. The authors emphasize
the need to weigh the costs and benefits of a more
transparent regulatory policy, and they explore the
connection between information imperfections, macroeconomic
policy, and questions of risk. The article argues for
developing institutional infrastructure, standards, and
accounting practices that promote transparency, implementing
incentives for disclosure and establishing regulations to
minimize the perverse incentives generated by safety net
arrangements, such as deposit insurance. Because
institutional development is gradual, the authors contend
that relatively simple regulations, such as limits on credit
expansion, may be the most reasonable option for developing
countries. They show that transparency has absolute limits
because of the lack of adequate enforcement and argue that
adequate enforcement may be predicated on broader reforms in
the public sector. |
| format |
Journal Article |
| author |
Vishwanath, Tara Kaufmann, Daniel |
| author_facet |
Vishwanath, Tara Kaufmann, Daniel |
| author_sort |
Vishwanath, Tara |
| title |
Toward Transparency : New Approaches and Their Application to Financial Markets |
| title_short |
Toward Transparency : New Approaches and Their Application to Financial Markets |
| title_full |
Toward Transparency : New Approaches and Their Application to Financial Markets |
| title_fullStr |
Toward Transparency : New Approaches and Their Application to Financial Markets |
| title_full_unstemmed |
Toward Transparency : New Approaches and Their Application to Financial Markets |
| title_sort |
toward transparency : new approaches and their application to financial markets |
| publisher |
Washington, DC: World Bank |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2001/03/17580032/toward-transparency-new-approaches-application-financial-markets http://hdl.handle.net/10986/17128 |
| _version_ |
1764433462655188992 |
| spelling |
okr-10986-171282021-04-23T14:03:29Z Toward Transparency : New Approaches and Their Application to Financial Markets Vishwanath, Tara Kaufmann, Daniel ACCESS TO INFORMATION ACCOUNTABILITY ACCOUNTING ACCOUNTING PRACTICES ACCOUNTING STANDARDS ACCOUNTING SYSTEMS ADVERSE SELECTION ARBITRAGE AUDITING AUDITORS AUDITS BAILOUT BAILOUTS BALANCE SHEET BANK ACTIVITIES BANK FAILURE BANK FAILURES BANK FOR INTERNATIONAL SETTLEMENTS BANK LOAN BANK LOAN GUARANTEES BANK OF ENGLAND BANK OFFICERS BANK PANICS BANK POLICIES BANK RATINGS BANK RUNS BANK SOLVENCY BANK TRANSPARENCY BANKING CRISES BANKING CRISIS BANKING PRACTICES BANKING SUPERVISION BANKING SYSTEMS BANKRUPTCY BASLE ACCORD BENEFICIARIES BONDS BORROWING CAPITAL ADEQUACY CAPITAL CONTROLS CAPITAL MARKETS CAPITAL REQUIREMENTS CENTRAL BANK CENTRAL BANKING CENTRAL BANKS CONFIDENTIALITY CONNECTED LENDING CONTAGION CONTINGENT LIABILITIES CORPORATE DISCLOSURE CREDIBILITY CREDIT AGENCIES CREDIT APPROVAL CREDIT EXPANSION CREDIT RATIONING CREDIT-RATING AGENCIES CREDITORS CREDITWORTHINESS DATA QUALITY DEGREE OF RISK DEPOSIT DEPOSIT INSURANCE DEPOSIT RATES DEPOSITORS DEPOSITS DERIVATIVE DERIVATIVE INSTRUMENTS DERIVATIVES DEVALUATION DEVELOPING COUNTRIES DISCLOSURE OF INFORMATION DISCLOSURE REQUIREMENTS DISCLOSURE STANDARDS DISSEMINATION OF INFORMATION DIVIDENDS DOMESTIC BANKS ECONOMIC CONDITIONS ECONOMIC COSTS ECONOMIC CRISES ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC STABILITY EMERGING ECONOMIES ENFORCEMENT MECHANISMS EXTERNALITIES FEDERAL RESERVE FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL INFORMATION FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL INTEGRATION FINANCIAL LIBERALIZATION FINANCIAL MARKET FINANCIAL MARKET INFORMATION FINANCIAL MARKETS FINANCIAL REFORM FINANCIAL RISK FINANCIAL SAFETY NETS FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL STUDIES FINANCIAL SYSTEM FINANCIAL SYSTEMS FINANCIAL TRANSACTIONS FISCAL POLICY FLOW OF INFORMATION FOREIGN BANKS FOREIGN CURRENCY FOREIGN CURRENCY DEBT FOREIGN INVESTORS FULL DISCLOSURE GLOBAL FINANCIAL INTEGRATION GLOBAL FINANCIAL SYSTEM GLOBALIZATION GOOD GOVERNANCE GOVERNMENT POLICIES GOVERNMENT POLICY GOVERNMENT REGULATION HEDGE FUNDS INDUSTRIAL COUNTRIES INFLATION INFORMATION ASYMMETRIES INFORMATION DISCLOSURE INFORMATION SHARING INFORMATION SYSTEMS INNOVATION INNOVATIVE FINANCING INSTITUTIONAL DEVELOPMENT INSTITUTIONAL INFRASTRUCTURE INSTITUTIONAL INVESTORS INTEREST RATES INTERNATIONAL BANK INTERNATIONAL BANKING INTERNATIONAL ECONOMICS INTERNATIONAL MARKET INTERNATIONAL MARKETS INTERNATIONAL SETTLEMENTS INVESTMENT ACTIVITY LACK OF TRANSPARENCY LAW ENFORCEMENT LAWS LEGAL ENVIRONMENTS LENDERS LEVY LIBERALIZATION OF FINANCIAL MARKETS LIMITED LIABILITY LIQUIDITY LIQUIDITY CRISES LIQUIDITY POSITION LOAN LOAN CLASSIFICATION LOAN CONTRACTS LOAN GUARANTEES LOCAL CURRENCY MACROECONOMIC POLICY MANDATES MARGINAL COST MARKET DISCIPLINE MARKET ENVIRONMENT MARKET EXPECTATIONS MARKET INFORMATION MARKET STABILITY MATURITY MONETARY FUND MONETARY POLICY MORAL HAZARD NATIONAL SECURITY NONPERFORMING LOANS OUTPUT PENALTIES PORTFOLIOS PRICE VOLATILITY PRIVACY PRIVATE CREDIT PROBLEM LOANS PROFITABILITY PROPERTY RIGHTS PUBLIC POLICY PUBLIC SERVICES REGULATORY ENVIRONMENT REGULATORY ENVIRONMENTS REGULATORY FORBEARANCE REGULATORY SYSTEM RENTS REPUTATION RESERVES RESOURCE ALLOCATION RETURNS RISK PROFILES RULE OF LAW SAFETY SAFETY NET SAFETY NETS SAVINGS SCANDALS SELF-REGULATION SHARE PRICE SHAREHOLDERS SOCIAL VALUE SOLVENCY STOCK EXCHANGE STOCK MARKET STOCK MARKET VOLATILITY STOCK RETURN TAX TAX SYSTEMS TECHNICAL ASSISTANCE TRANSACTION TRANSACTION COSTS TRANSPARENCY UNEMPLOYMENT VALUATION VALUE OF ASSETS WARRANTS WEAK ENFORCEMENT WORLD FINANCIAL MARKETS The Asian financial crisis in the late 1990s not only highlighted the welfare consequences of transparency in the financial sector but also linked this relatively narrow problem to the broader context of transparency in governance. It has been observed that objections to transparency, often on flimsy pretexts, are common even in industrialized countries. This article argues that transparency is indispensable to the financial sector and describes its desirable characteristics: access, timeliness, relevance, and quality. The authors emphasize the need to weigh the costs and benefits of a more transparent regulatory policy, and they explore the connection between information imperfections, macroeconomic policy, and questions of risk. The article argues for developing institutional infrastructure, standards, and accounting practices that promote transparency, implementing incentives for disclosure and establishing regulations to minimize the perverse incentives generated by safety net arrangements, such as deposit insurance. Because institutional development is gradual, the authors contend that relatively simple regulations, such as limits on credit expansion, may be the most reasonable option for developing countries. They show that transparency has absolute limits because of the lack of adequate enforcement and argue that adequate enforcement may be predicated on broader reforms in the public sector. 2014-02-20T22:49:47Z 2014-02-20T22:49:47Z 2001-04 Journal Article http://documents.worldbank.org/curated/en/2001/03/17580032/toward-transparency-new-approaches-application-financial-markets World Bank Research Observer http://hdl.handle.net/10986/17128 English en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo/ World Bank Washington, DC: World Bank Publications & Research :: Journal Article Publications & Research |