Philippines Financial Sector Assessment Program : Capital Markets Development

The Philippines corporate debt and equity markets will need to grow to provide alternative financing sources to support the strongly growing economy and emphasis on infrastructure spend. Capital markets deepening will be an essential pre-requisite...

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Main Author:	Moini, Yavar
Format:	Report
Language:	English
Published:	World Bank, Washington, DC 2021
Subjects:	FINANCIAL SECTOR DEVELOPMENT CAPITAL MARKETS NON-BANK FINANCIAL INSTITUTIONS GOVERNMENT DEBT CORPORATE DEBT EQUITY MARKET SECURITIES MARKET COLLECTIVE INVESTMENT SCHEME
Online Access:	http://documents.worldbank.org/curated/en/100761629265204361/Philippines-Financial-Sector-Assessment-Program-Capital-Markets-Development-Technical-Note http://hdl.handle.net/10986/36185

id	okr-10986-36185
recordtype	oai_dc
spelling	okr-10986-361852021-08-24T05:10:44Z Philippines Financial Sector Assessment Program : Capital Markets Development Moini, Yavar FINANCIAL SECTOR DEVELOPMENT CAPITAL MARKETS NON-BANK FINANCIAL INSTITUTIONS GOVERNMENT DEBT CORPORATE DEBT EQUITY MARKET SECURITIES MARKET COLLECTIVE INVESTMENT SCHEME The Philippines corporate debt and equity markets will need to grow to provide alternative financing sources to support the strongly growing economy and emphasis on infrastructure spend. Capital markets deepening will be an essential pre-requisite for the country’s continued economic development. Well-functioning capital markets ensure the optimal allocation and pricing of capital. This enables retail and wholesale pools of capital to be efficiently deployed in a manner that maximizes returns for such owners of capital against their risk profile. Furthermore, there are a number of technical and operational issues that can be addressed, that can significantly improve the enabling environment for and functioning of the capital markets. The result of these factors has been a lack of focus in policy development and implementation that has hampered capital market development. Key issues include: a lack of commitment to reform from key stakeholders that has impeded the development of markets and market infrastructure; an onerous tax environment that has deterred issuance and investment; a continuing need to improve investor confidence by strengthening the quality of supervision and enforcement for market intermediaries and market operators; cumbersome regulatory requirements and processes around issuance, particularly debt issuance; and outdated and inefficient trading and post-trading infrastructure, and governance concerns regarding market operators. In order to effect meaningful change, a capital markets champion is required. This champion should be cognizant of the relevance of capital markets to the country and possess the will and vision to drive legislative, regulatory, and tax reforms. In addition, a commitment to initiate a change in the ownership and governance of key exchanges and enforce policy against entrenched interests will provide considerable impetus for development. 2021-08-23T20:31:07Z 2021-08-23T20:31:07Z 2019-07 Report http://documents.worldbank.org/curated/en/100761629265204361/Philippines-Financial-Sector-Assessment-Program-Capital-Markets-Development-Technical-Note http://hdl.handle.net/10986/36185 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work :: Financial Sector Assessment Program Economic & Sector Work East Asia and Pacific Philippines
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	FINANCIAL SECTOR DEVELOPMENT CAPITAL MARKETS NON-BANK FINANCIAL INSTITUTIONS GOVERNMENT DEBT CORPORATE DEBT EQUITY MARKET SECURITIES MARKET COLLECTIVE INVESTMENT SCHEME
spellingShingle	FINANCIAL SECTOR DEVELOPMENT CAPITAL MARKETS NON-BANK FINANCIAL INSTITUTIONS GOVERNMENT DEBT CORPORATE DEBT EQUITY MARKET SECURITIES MARKET COLLECTIVE INVESTMENT SCHEME Moini, Yavar Philippines Financial Sector Assessment Program : Capital Markets Development
geographic_facet	East Asia and Pacific Philippines
description	The Philippines corporate debt and equity markets will need to grow to provide alternative financing sources to support the strongly growing economy and emphasis on infrastructure spend. Capital markets deepening will be an essential pre-requisite for the country’s continued economic development. Well-functioning capital markets ensure the optimal allocation and pricing of capital. This enables retail and wholesale pools of capital to be efficiently deployed in a manner that maximizes returns for such owners of capital against their risk profile. Furthermore, there are a number of technical and operational issues that can be addressed, that can significantly improve the enabling environment for and functioning of the capital markets. The result of these factors has been a lack of focus in policy development and implementation that has hampered capital market development. Key issues include: a lack of commitment to reform from key stakeholders that has impeded the development of markets and market infrastructure; an onerous tax environment that has deterred issuance and investment; a continuing need to improve investor confidence by strengthening the quality of supervision and enforcement for market intermediaries and market operators; cumbersome regulatory requirements and processes around issuance, particularly debt issuance; and outdated and inefficient trading and post-trading infrastructure, and governance concerns regarding market operators. In order to effect meaningful change, a capital markets champion is required. This champion should be cognizant of the relevance of capital markets to the country and possess the will and vision to drive legislative, regulatory, and tax reforms. In addition, a commitment to initiate a change in the ownership and governance of key exchanges and enforce policy against entrenched interests will provide considerable impetus for development.
format	Report
author	Moini, Yavar
author_facet	Moini, Yavar
author_sort	Moini, Yavar
title	Philippines Financial Sector Assessment Program : Capital Markets Development
title_short	Philippines Financial Sector Assessment Program : Capital Markets Development
title_full	Philippines Financial Sector Assessment Program : Capital Markets Development
title_fullStr	Philippines Financial Sector Assessment Program : Capital Markets Development
title_full_unstemmed	Philippines Financial Sector Assessment Program : Capital Markets Development
title_sort	philippines financial sector assessment program : capital markets development
publisher	World Bank, Washington, DC
publishDate	2021
url	http://documents.worldbank.org/curated/en/100761629265204361/Philippines-Financial-Sector-Assessment-Program-Capital-Markets-Development-Technical-Note http://hdl.handle.net/10986/36185
_version_	1764484743170097152

Philippines Financial Sector Assessment Program : Capital Markets Development

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