Strengthening Financial Systems in Developing Countries : The Case for Incentives-Based Financial Sector Reforms
An international cooperative effort has been focused on the need to reduce financial fragility and systemic risks in global financial markets. Work is proceeding in three different areas: enhancing financial market transparency, improving the inter...
| Main Authors: | , |
|---|---|
| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/484681468155968806/Strengthening-financial-systems-in-developing-countries-the-case-for-incentives-based-financial-sector-reforms http://hdl.handle.net/10986/27109 |
| id |
okr-10986-27109 |
|---|---|
| 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 |
ACCOUNTABILITY ACCOUNTING ACCOUNTING PRACTICES ACCOUNTING PRINCIPLES AFFILIATES ARBITRAGE AUDITING AUDITORS BAILOUTS BANK FAILURES BANK FOR INTERNATIONAL SETTLEMENTS BANK LIQUIDITY BANK LOANS BANK PRIVATIZATION BANK RECAPITALIZATION BANKING CRISES BANKING INDUSTRY BANKING REGULATION BANKING SERVICES BANKING SYSTEM BANKING SYSTEMS BANKS BASLE ACCORD BONDS BORROWER BORROWING COSTS BROAD MONEY CAPITAL ADEQUACY CAPITAL ALLOCATIONS CAPITAL BASE CAPITAL FLOWS CAPITAL MARKET CAPITAL MARKET DEVELOPMENT CAPITAL MARKETS CAPITAL REQUIREMENTS CAPITALIZATION CENTRAL BANKS CLEARING BANKS CLEARING HOUSE CLEARING HOUSES COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL BANKS CREDIT COMMERCIAL PROPERTY COMMUNITY BANKS CONSOLIDATED SUPERVISION CORPORATE DEBT CORPORATE GOVERNANCE CREDIBILITY CREDIT ASSESSMENT CREDIT DISCIPLINE CREDIT EXPANSION CREDIT RISK CREDITORS CREDITWORTHY BORROWERS CRISIS COUNTRIES DEBT DEBT CRISIS DEPOSIT DEPOSIT INSURANCE DEPOSIT INSURANCE SCHEMES DEPOSITORS DEPOSITS DEVELOPING COUNTRIES DISINTERMEDIATION DOMESTIC BANKS DOMESTIC BORROWING DOMESTIC CAPITAL DOMESTIC CAPITAL MARKETS DOMESTIC FINANCIAL MARKETS DOMESTIC MARKET DOMESTIC MARKETS ECONOMIC DEVELOPMENT EMERGING ECONOMIES EMPLOYMENT EQUITIES EQUITY MARKETS EXCHANGE RATE EXTERNALITIES FEDERAL DEPOSIT INSURANCE FEDERAL DEPOSIT INSURANCE CORPORATION FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DISTRESS FINANCIAL FRAGILITY FINANCIAL INFORMATION FINANCIAL INSTITUTIONS FINANCIAL LIBERALIZATION FINANCIAL MANAGEMENT FINANCIAL MARKET FINANCIAL MARKET PARTICIPANTS FINANCIAL MARKETS FINANCIAL REFORM FINANCIAL REGULATION FINANCIAL RISK FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL STRENGTH FINANCIAL STRUCTURE FINANCIAL SYSTEM FINANCIAL SYSTEMS FINANCIAL TRANSACTIONS FLOW OF INFORMATION FOREIGN BANK FOREIGN BANKS FOREIGN ENTRY FOREIGN EXCHANGE FOREIGN FINANCIAL INSTITUTIONS FOREIGN INVESTMENT GLOBAL ECONOMY GOVERNMENT INTERVENTION HUMAN CAPITAL HUMAN RESOURCES IMPLICIT GOVERNMENT GUARANTEE IMPLICIT GOVERNMENT GUARANTEES INCOME LEVEL INDEBTEDNESS INFORMAL FINANCE INFORMAL FINANCIERS INSTITUTIONAL INVESTORS INTEREST RATES INTERNAL CONTROLS INTERNATIONAL CAPITAL INTERNATIONAL MARKETS INVENTORY INVESTMENT OPPORTUNITIES INVESTMENT STRATEGIES INVESTOR BASE LAWS LEGAL RIGHTS LEGAL SYSTEM LEGAL SYSTEMS LEGISLATION LENDER OF LAST RESORT LENDERS LIQUIDATION LYON MACROECONOMIC STABILITY MACROECONOMIC STABILIZATION MARKET CAPITALIZATION MARKET DATA MARKET DEVELOPMENT MARKET DISCIPLINE MARKET ECONOMIES MARKET ENTRY MARKET FAILURES MARKET INFRASTRUCTURES MARKET LIQUIDITY MARKET RISKS MARKET TRANSPARENCY MARKET VALUE MATURITY MATURITY SPECTRUM MERCHANT BANKS MONEY CENTER BANKS MORAL HAZARD NATURAL RESOURCES OPEN MARKETS OPPORTUNITY COST PAYMENT SYSTEMS PENALTIES PENSION PENSION REFORM POLITICAL STABILITY PORTFOLIO PORTFOLIOS PRICE SETTING PRIVATE BANKS PRIVATE DEBT PRIVATIZATION PRODUCTIVITY PROFIT OPPORTUNITIES PROFITABILITY PROPERTY TAXES PRUDENTIAL REGULATION PRUDENTIAL SUPERVISION RATING AGENCIES REAL SECTOR RECAPITALIZATION REGULATORY FRAMEWORK REGULATORY PRACTICES REGULATORY SYSTEMS REORGANIZATION RESERVE ASSETS RESERVE REQUIREMENTS RESOURCE ALLOCATION RETURN RETURNS RISK CONTROL RISK EXPOSURES RISK MANAGEMENT RISK TAKING SAFETY NETS SAVINGS SECURITIES SETTLEMENT SHARE OF CREDIT STOCK MARKET STOCK MARKETS STRUCTURAL ADJUSTMENT SUBORDINATED DEBT SUBSIDIARIES SUPERVISORY AUTHORITIES SUPERVISORY REGIMES SYSTEMIC RISK TECHNICAL ASSISTANCE TELECOMMUNICATIONS TRANSACTION COSTS TRANSACTIONS COSTS TRANSITION ECONOMIES TURNOVER WITHDRAWAL WITHDRAWAL OF FUNDS |
| spellingShingle |
ACCOUNTABILITY ACCOUNTING ACCOUNTING PRACTICES ACCOUNTING PRINCIPLES AFFILIATES ARBITRAGE AUDITING AUDITORS BAILOUTS BANK FAILURES BANK FOR INTERNATIONAL SETTLEMENTS BANK LIQUIDITY BANK LOANS BANK PRIVATIZATION BANK RECAPITALIZATION BANKING CRISES BANKING INDUSTRY BANKING REGULATION BANKING SERVICES BANKING SYSTEM BANKING SYSTEMS BANKS BASLE ACCORD BONDS BORROWER BORROWING COSTS BROAD MONEY CAPITAL ADEQUACY CAPITAL ALLOCATIONS CAPITAL BASE CAPITAL FLOWS CAPITAL MARKET CAPITAL MARKET DEVELOPMENT CAPITAL MARKETS CAPITAL REQUIREMENTS CAPITALIZATION CENTRAL BANKS CLEARING BANKS CLEARING HOUSE CLEARING HOUSES COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL BANKS CREDIT COMMERCIAL PROPERTY COMMUNITY BANKS CONSOLIDATED SUPERVISION CORPORATE DEBT CORPORATE GOVERNANCE CREDIBILITY CREDIT ASSESSMENT CREDIT DISCIPLINE CREDIT EXPANSION CREDIT RISK CREDITORS CREDITWORTHY BORROWERS CRISIS COUNTRIES DEBT DEBT CRISIS DEPOSIT DEPOSIT INSURANCE DEPOSIT INSURANCE SCHEMES DEPOSITORS DEPOSITS DEVELOPING COUNTRIES DISINTERMEDIATION DOMESTIC BANKS DOMESTIC BORROWING DOMESTIC CAPITAL DOMESTIC CAPITAL MARKETS DOMESTIC FINANCIAL MARKETS DOMESTIC MARKET DOMESTIC MARKETS ECONOMIC DEVELOPMENT EMERGING ECONOMIES EMPLOYMENT EQUITIES EQUITY MARKETS EXCHANGE RATE EXTERNALITIES FEDERAL DEPOSIT INSURANCE FEDERAL DEPOSIT INSURANCE CORPORATION FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DISTRESS FINANCIAL FRAGILITY FINANCIAL INFORMATION FINANCIAL INSTITUTIONS FINANCIAL LIBERALIZATION FINANCIAL MANAGEMENT FINANCIAL MARKET FINANCIAL MARKET PARTICIPANTS FINANCIAL MARKETS FINANCIAL REFORM FINANCIAL REGULATION FINANCIAL RISK FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL STRENGTH FINANCIAL STRUCTURE FINANCIAL SYSTEM FINANCIAL SYSTEMS FINANCIAL TRANSACTIONS FLOW OF INFORMATION FOREIGN BANK FOREIGN BANKS FOREIGN ENTRY FOREIGN EXCHANGE FOREIGN FINANCIAL INSTITUTIONS FOREIGN INVESTMENT GLOBAL ECONOMY GOVERNMENT INTERVENTION HUMAN CAPITAL HUMAN RESOURCES IMPLICIT GOVERNMENT GUARANTEE IMPLICIT GOVERNMENT GUARANTEES INCOME LEVEL INDEBTEDNESS INFORMAL FINANCE INFORMAL FINANCIERS INSTITUTIONAL INVESTORS INTEREST RATES INTERNAL CONTROLS INTERNATIONAL CAPITAL INTERNATIONAL MARKETS INVENTORY INVESTMENT OPPORTUNITIES INVESTMENT STRATEGIES INVESTOR BASE LAWS LEGAL RIGHTS LEGAL SYSTEM LEGAL SYSTEMS LEGISLATION LENDER OF LAST RESORT LENDERS LIQUIDATION LYON MACROECONOMIC STABILITY MACROECONOMIC STABILIZATION MARKET CAPITALIZATION MARKET DATA MARKET DEVELOPMENT MARKET DISCIPLINE MARKET ECONOMIES MARKET ENTRY MARKET FAILURES MARKET INFRASTRUCTURES MARKET LIQUIDITY MARKET RISKS MARKET TRANSPARENCY MARKET VALUE MATURITY MATURITY SPECTRUM MERCHANT BANKS MONEY CENTER BANKS MORAL HAZARD NATURAL RESOURCES OPEN MARKETS OPPORTUNITY COST PAYMENT SYSTEMS PENALTIES PENSION PENSION REFORM POLITICAL STABILITY PORTFOLIO PORTFOLIOS PRICE SETTING PRIVATE BANKS PRIVATE DEBT PRIVATIZATION PRODUCTIVITY PROFIT OPPORTUNITIES PROFITABILITY PROPERTY TAXES PRUDENTIAL REGULATION PRUDENTIAL SUPERVISION RATING AGENCIES REAL SECTOR RECAPITALIZATION REGULATORY FRAMEWORK REGULATORY PRACTICES REGULATORY SYSTEMS REORGANIZATION RESERVE ASSETS RESERVE REQUIREMENTS RESOURCE ALLOCATION RETURN RETURNS RISK CONTROL RISK EXPOSURES RISK MANAGEMENT RISK TAKING SAFETY NETS SAVINGS SECURITIES SETTLEMENT SHARE OF CREDIT STOCK MARKET STOCK MARKETS STRUCTURAL ADJUSTMENT SUBORDINATED DEBT SUBSIDIARIES SUPERVISORY AUTHORITIES SUPERVISORY REGIMES SYSTEMIC RISK TECHNICAL ASSISTANCE TELECOMMUNICATIONS TRANSACTION COSTS TRANSACTIONS COSTS TRANSITION ECONOMIES TURNOVER WITHDRAWAL WITHDRAWAL OF FUNDS Bossone, Biagio Promisel, Larry Strengthening Financial Systems in Developing Countries : The Case for Incentives-Based Financial Sector Reforms |
| description |
An international cooperative effort has
been focused on the need to reduce financial fragility and
systemic risks in global financial markets. Work is
proceeding in three different areas: enhancing financial
market transparency, improving the international financial
architecture, and strengthening financial systems.
Strengthening financial systems (the focus of this paper)
means cooperating to promote principles and sound practices
for financial stability through development of
well-functioning financial systems and market discipline.
Financial sector reform and development is much more than
setting rules, articulating standards, approving
legislation, and creating new institutions. All are
important but ultimately behavior must be changed if there
is to be meaningful and lasting financial reform. For that
reason, this paper emphasizes the role of incentives to
induce appropriate behavior. Developing countries have made
important progress toward improved financial supervision in
the past few years. Reforming financial sectors is a lengthy
and complex process of institution building and incentive
reorientation, whose success requires full ownership of, and
participation in, the process by society and its government. |
| format |
Working Paper |
| author |
Bossone, Biagio Promisel, Larry |
| author_facet |
Bossone, Biagio Promisel, Larry |
| author_sort |
Bossone, Biagio |
| title |
Strengthening Financial Systems in Developing Countries : The Case for Incentives-Based Financial Sector Reforms |
| title_short |
Strengthening Financial Systems in Developing Countries : The Case for Incentives-Based Financial Sector Reforms |
| title_full |
Strengthening Financial Systems in Developing Countries : The Case for Incentives-Based Financial Sector Reforms |
| title_fullStr |
Strengthening Financial Systems in Developing Countries : The Case for Incentives-Based Financial Sector Reforms |
| title_full_unstemmed |
Strengthening Financial Systems in Developing Countries : The Case for Incentives-Based Financial Sector Reforms |
| title_sort |
strengthening financial systems in developing countries : the case for incentives-based financial sector reforms |
| publisher |
World Bank, Washington, DC |
| publishDate |
2017 |
| url |
http://documents.worldbank.org/curated/en/484681468155968806/Strengthening-financial-systems-in-developing-countries-the-case-for-incentives-based-financial-sector-reforms http://hdl.handle.net/10986/27109 |
| _version_ |
1764463570399002624 |
| spelling |
okr-10986-271092021-04-23T14:04:40Z Strengthening Financial Systems in Developing Countries : The Case for Incentives-Based Financial Sector Reforms Bossone, Biagio Promisel, Larry ACCOUNTABILITY ACCOUNTING ACCOUNTING PRACTICES ACCOUNTING PRINCIPLES AFFILIATES ARBITRAGE AUDITING AUDITORS BAILOUTS BANK FAILURES BANK FOR INTERNATIONAL SETTLEMENTS BANK LIQUIDITY BANK LOANS BANK PRIVATIZATION BANK RECAPITALIZATION BANKING CRISES BANKING INDUSTRY BANKING REGULATION BANKING SERVICES BANKING SYSTEM BANKING SYSTEMS BANKS BASLE ACCORD BONDS BORROWER BORROWING COSTS BROAD MONEY CAPITAL ADEQUACY CAPITAL ALLOCATIONS CAPITAL BASE CAPITAL FLOWS CAPITAL MARKET CAPITAL MARKET DEVELOPMENT CAPITAL MARKETS CAPITAL REQUIREMENTS CAPITALIZATION CENTRAL BANKS CLEARING BANKS CLEARING HOUSE CLEARING HOUSES COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL BANKS CREDIT COMMERCIAL PROPERTY COMMUNITY BANKS CONSOLIDATED SUPERVISION CORPORATE DEBT CORPORATE GOVERNANCE CREDIBILITY CREDIT ASSESSMENT CREDIT DISCIPLINE CREDIT EXPANSION CREDIT RISK CREDITORS CREDITWORTHY BORROWERS CRISIS COUNTRIES DEBT DEBT CRISIS DEPOSIT DEPOSIT INSURANCE DEPOSIT INSURANCE SCHEMES DEPOSITORS DEPOSITS DEVELOPING COUNTRIES DISINTERMEDIATION DOMESTIC BANKS DOMESTIC BORROWING DOMESTIC CAPITAL DOMESTIC CAPITAL MARKETS DOMESTIC FINANCIAL MARKETS DOMESTIC MARKET DOMESTIC MARKETS ECONOMIC DEVELOPMENT EMERGING ECONOMIES EMPLOYMENT EQUITIES EQUITY MARKETS EXCHANGE RATE EXTERNALITIES FEDERAL DEPOSIT INSURANCE FEDERAL DEPOSIT INSURANCE CORPORATION FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DISTRESS FINANCIAL FRAGILITY FINANCIAL INFORMATION FINANCIAL INSTITUTIONS FINANCIAL LIBERALIZATION FINANCIAL MANAGEMENT FINANCIAL MARKET FINANCIAL MARKET PARTICIPANTS FINANCIAL MARKETS FINANCIAL REFORM FINANCIAL REGULATION FINANCIAL RISK FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL STRENGTH FINANCIAL STRUCTURE FINANCIAL SYSTEM FINANCIAL SYSTEMS FINANCIAL TRANSACTIONS FLOW OF INFORMATION FOREIGN BANK FOREIGN BANKS FOREIGN ENTRY FOREIGN EXCHANGE FOREIGN FINANCIAL INSTITUTIONS FOREIGN INVESTMENT GLOBAL ECONOMY GOVERNMENT INTERVENTION HUMAN CAPITAL HUMAN RESOURCES IMPLICIT GOVERNMENT GUARANTEE IMPLICIT GOVERNMENT GUARANTEES INCOME LEVEL INDEBTEDNESS INFORMAL FINANCE INFORMAL FINANCIERS INSTITUTIONAL INVESTORS INTEREST RATES INTERNAL CONTROLS INTERNATIONAL CAPITAL INTERNATIONAL MARKETS INVENTORY INVESTMENT OPPORTUNITIES INVESTMENT STRATEGIES INVESTOR BASE LAWS LEGAL RIGHTS LEGAL SYSTEM LEGAL SYSTEMS LEGISLATION LENDER OF LAST RESORT LENDERS LIQUIDATION LYON MACROECONOMIC STABILITY MACROECONOMIC STABILIZATION MARKET CAPITALIZATION MARKET DATA MARKET DEVELOPMENT MARKET DISCIPLINE MARKET ECONOMIES MARKET ENTRY MARKET FAILURES MARKET INFRASTRUCTURES MARKET LIQUIDITY MARKET RISKS MARKET TRANSPARENCY MARKET VALUE MATURITY MATURITY SPECTRUM MERCHANT BANKS MONEY CENTER BANKS MORAL HAZARD NATURAL RESOURCES OPEN MARKETS OPPORTUNITY COST PAYMENT SYSTEMS PENALTIES PENSION PENSION REFORM POLITICAL STABILITY PORTFOLIO PORTFOLIOS PRICE SETTING PRIVATE BANKS PRIVATE DEBT PRIVATIZATION PRODUCTIVITY PROFIT OPPORTUNITIES PROFITABILITY PROPERTY TAXES PRUDENTIAL REGULATION PRUDENTIAL SUPERVISION RATING AGENCIES REAL SECTOR RECAPITALIZATION REGULATORY FRAMEWORK REGULATORY PRACTICES REGULATORY SYSTEMS REORGANIZATION RESERVE ASSETS RESERVE REQUIREMENTS RESOURCE ALLOCATION RETURN RETURNS RISK CONTROL RISK EXPOSURES RISK MANAGEMENT RISK TAKING SAFETY NETS SAVINGS SECURITIES SETTLEMENT SHARE OF CREDIT STOCK MARKET STOCK MARKETS STRUCTURAL ADJUSTMENT SUBORDINATED DEBT SUBSIDIARIES SUPERVISORY AUTHORITIES SUPERVISORY REGIMES SYSTEMIC RISK TECHNICAL ASSISTANCE TELECOMMUNICATIONS TRANSACTION COSTS TRANSACTIONS COSTS TRANSITION ECONOMIES TURNOVER WITHDRAWAL WITHDRAWAL OF FUNDS An international cooperative effort has been focused on the need to reduce financial fragility and systemic risks in global financial markets. Work is proceeding in three different areas: enhancing financial market transparency, improving the international financial architecture, and strengthening financial systems. Strengthening financial systems (the focus of this paper) means cooperating to promote principles and sound practices for financial stability through development of well-functioning financial systems and market discipline. Financial sector reform and development is much more than setting rules, articulating standards, approving legislation, and creating new institutions. All are important but ultimately behavior must be changed if there is to be meaningful and lasting financial reform. For that reason, this paper emphasizes the role of incentives to induce appropriate behavior. Developing countries have made important progress toward improved financial supervision in the past few years. Reforming financial sectors is a lengthy and complex process of institution building and incentive reorientation, whose success requires full ownership of, and participation in, the process by society and its government. 2017-06-13T20:01:29Z 2017-06-13T20:01:29Z 2012 Working Paper http://documents.worldbank.org/curated/en/484681468155968806/Strengthening-financial-systems-in-developing-countries-the-case-for-incentives-based-financial-sector-reforms http://hdl.handle.net/10986/27109 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research :: Working Paper Publications & Research |