Financial Sector Strategies and Financial Sector Outcomes : Do the Strategies Perform?
Financial sector strategies enable financial policy makers and stakeholders to take a holistic view of the financial development needs in their country and formulate balanced financial policies. They help policy makers consider the systemic risk th...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/731031516722333398/Financial-sector-strategies-and-financial-sector-outcomes-do-the-strategies-perform http://hdl.handle.net/10986/29282 |
| Summary: | Financial sector strategies enable
financial policy makers and stakeholders to take a holistic
view of the financial development needs in their country and
formulate balanced financial policies. They help policy
makers consider the systemic risk that different development
policies involve and choose an informed way forward. This
study constructed a new data set of historical financial
sector strategies covering 150 countries over 1985-2014. It
assesses the strategies using the rating criteria proposed
by Maimbo and Melecky (2014). It further investigates how
the quality of the strategies can affect financial sector
outcomes, such as financial depth, inclusion, efficiency,
and stability. The investigation finds that the use of
financial sector strategies helped increase financial sector
deepening, inclusion, and stability, and this impact could
be greater for higher-quality strategies. However, a
significant relationship between the use of strategies and
the efficiency of banks is not confirmed. One way how
financial sector strategies can improve financial sector
outcomes is by improving the regulatory framework for finance. |
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