Creating Domestic Capital Markets in Developing Countries : Perspectives from Market Participants

Domestic capital markets that are deep, efficient, and well-regulated can create access to long-term, local-currency finance. Interviews with market participants reveal four important findings. First, there are two distinct phases of capital market...

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Main Authors:	Demekas, Dimitrios G., Nerlich, Anica
Format:	Brief
Language:	English
Published:	International Finance Corporation, Washington, DC 2020
Subjects:	EMERGING MARKET ECONOMIES CAPITAL MARKETS DOMESTIC CAPITAL MARKET DEVELOPMENT PRIVATE INVESTMENT PUBLIC DEBT SECURITIES MARKET FOREIGN DIRECT INVESTMENT MARKET FAILURE
Online Access:	http://documents.worldbank.org/curated/en/516741587021662736/Creating-Domestic-Capital-Markets-in-Developing-Countries-Perspectives-from-Market-Participants http://hdl.handle.net/10986/33617

id	okr-10986-33617
recordtype	oai_dc
spelling	okr-10986-336172021-05-25T10:54:43Z Creating Domestic Capital Markets in Developing Countries : Perspectives from Market Participants Demekas, Dimitrios G. Nerlich, Anica EMERGING MARKET ECONOMIES CAPITAL MARKETS DOMESTIC CAPITAL MARKET DEVELOPMENT PRIVATE INVESTMENT PUBLIC DEBT SECURITIES MARKET FOREIGN DIRECT INVESTMENT MARKET FAILURE Domestic capital markets that are deep, efficient, and well-regulated can create access to long-term, local-currency finance. Interviews with market participants reveal four important findings. First, there are two distinct phases of capital market development, an embryonic phase in which the government is predominant and a mature phase in which the capital market starts to serve the private sector. Each phase has distinct preconditions and drivers that determine the success of capital market development. Second, capital market development requires continuous monitoring and policy interventions due to changing market stages, some of them stable but suboptimal. Third, while capital markets are a crucial source of large volume, long-term local currency finance, they often fail smaller countries and companies. Finally, as the capital market develops, intangible or ‘soft’ factors become more important, including financial sophistication, a culture of trading and risk-taking, the quality of human capital, and an appreciation of transparency. 2020-04-17T16:23:17Z 2020-04-17T16:23:17Z 2020-01 Brief http://documents.worldbank.org/curated/en/516741587021662736/Creating-Domestic-Capital-Markets-in-Developing-Countries-Perspectives-from-Market-Participants http://hdl.handle.net/10986/33617 English EMCompass,no. 77; CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo International Finance Corporation International Finance Corporation, Washington, DC Publications & Research Publications & Research :: Brief
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	EMERGING MARKET ECONOMIES CAPITAL MARKETS DOMESTIC CAPITAL MARKET DEVELOPMENT PRIVATE INVESTMENT PUBLIC DEBT SECURITIES MARKET FOREIGN DIRECT INVESTMENT MARKET FAILURE
spellingShingle	EMERGING MARKET ECONOMIES CAPITAL MARKETS DOMESTIC CAPITAL MARKET DEVELOPMENT PRIVATE INVESTMENT PUBLIC DEBT SECURITIES MARKET FOREIGN DIRECT INVESTMENT MARKET FAILURE Demekas, Dimitrios G. Nerlich, Anica Creating Domestic Capital Markets in Developing Countries : Perspectives from Market Participants
relation	EMCompass,no. 77;
description	Domestic capital markets that are deep, efficient, and well-regulated can create access to long-term, local-currency finance. Interviews with market participants reveal four important findings. First, there are two distinct phases of capital market development, an embryonic phase in which the government is predominant and a mature phase in which the capital market starts to serve the private sector. Each phase has distinct preconditions and drivers that determine the success of capital market development. Second, capital market development requires continuous monitoring and policy interventions due to changing market stages, some of them stable but suboptimal. Third, while capital markets are a crucial source of large volume, long-term local currency finance, they often fail smaller countries and companies. Finally, as the capital market develops, intangible or ‘soft’ factors become more important, including financial sophistication, a culture of trading and risk-taking, the quality of human capital, and an appreciation of transparency.
format	Brief
author	Demekas, Dimitrios G. Nerlich, Anica
author_facet	Demekas, Dimitrios G. Nerlich, Anica
author_sort	Demekas, Dimitrios G.
title	Creating Domestic Capital Markets in Developing Countries : Perspectives from Market Participants
title_short	Creating Domestic Capital Markets in Developing Countries : Perspectives from Market Participants
title_full	Creating Domestic Capital Markets in Developing Countries : Perspectives from Market Participants
title_fullStr	Creating Domestic Capital Markets in Developing Countries : Perspectives from Market Participants
title_full_unstemmed	Creating Domestic Capital Markets in Developing Countries : Perspectives from Market Participants
title_sort	creating domestic capital markets in developing countries : perspectives from market participants
publisher	International Finance Corporation, Washington, DC
publishDate	2020
url	http://documents.worldbank.org/curated/en/516741587021662736/Creating-Domestic-Capital-Markets-in-Developing-Countries-Perspectives-from-Market-Participants http://hdl.handle.net/10986/33617
_version_	1764479152048570368

Creating Domestic Capital Markets in Developing Countries : Perspectives from Market Participants

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