Benchmarking financial development (original) (raw)

Financial development measurement: Comparison of the high- and low-income countries

Journal of Governance and Regulation

The literature that treats financial sector development and its impact on various economic phenomena does not recognise a single indicator of financial development measurement, nor do the various regulators of the financial sector have a single indicator to measure its development. Divergencies in financial development proxies used have prompted the International Monetary Fund (IMF) staff to create an indicator that includes all aspects of financial sector development (Čihák, Demirgüç-Kunt, Feyen, & Levine, 2012). The purpose of this paper is to show the main indicators of the financial development measurement and the gap between high- and low-income countries’ financial systems using the financial development index (FD index) developed by the IMF. This paper introduces the financial development indicator and uses it to compare different income group countries. The results show differences in the levels of financial development across countries. We also notice an improvement of the ...

New financial intermediary development indicators for developing countries

Financial development indicators are often applied to countries/regions without taking into account specific financial development realities. Financial depth in the perspective of monetary base is not equal to liquid liabilities in every development context. This paper introduces complementary indicators to the existing Financial Development and Structure Database (FDSD) and unites two streams of research. It contributes at the same time to the macroeconomic literature on measuring financial development and responds to the growing field of economic development by means of informal financial sector promotion and microfinance. The paper suggests a practicable way to disentangle the effects of the various financial sectors on economic developments.

Financial Sector Policy for Developing Countries

2002

The findings, interpretations, and conclusions expressed here are those of the author(s) and do not necessarily reflect the views of the Board of Executive Directors of the World Bank or the governments they represent. The World Bank cannot guarantee the accuracy of the data inicluded in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply on the part of the World Bank any judgment of the legal status of any territory or the endorsement or acceptance of such boundaries. xvi CESARE CALARI As a personal note, I would like to add that I have had the privilege of working with Millard on various occasions, particularly during the early years of my career with the World Bank Group. The lessons I learned from him have stayed with me, and none is greater than the power of ideas, when supported by sound research and intellectual integrity. It gives me, then, particular pleasure to sign this foreword. Note 1. By the mid-1990s, the International Monetary Fund was also stepping up its involvement in the field of financial sector policy, which has now been fully recognized in the work of the Monetary and Exchange Affairs Department and the newly created Capital Markets Department. Since 1999, the Fund has joined the Bank in launching a comprehensive country-by-country financial sector assessment program (FSAP), which places diagnostic work on a more systematic basis than had been possible in the past. References The word processed describes informally produced works that may not be commonly available through libraries.

Financial Institutions and Markets across Countries and over Time – Data and Analysis

This paper introduces the updated and expanded version of the Financial Development and Structure Database and presents recent trends in structure and development of financial institutions and markets across countries. We add indicators on banking structure and financial globalization. We find a deepening of both financial markets and institutions, a trend concentrated in high-income countries and more pronounced for markets than for banks. Similarly, the recent increase in cross-border lending and debt issues has been concentrated in high-income countries, while low and lower-middle income countries have experienced an increase in remittance flows. Low net interest margins, rising profitability and declining stability in high-income countries' banking sectors characterize the recent financial sector boom in high income countries leading up to the global financial crisis of 2007.

A new database on financial development and structure

World, 2000

This new database of indicators of financial Financial Development development and structure and Structure across countries and over time unites a range of indicators that measure the Thorsten Beck size, activity, and efficiency of Asli Demirgiiu-Kunt financial intermediaries and Ross Levine markets.

Financial development in 205 economies, 1960 to 2010

This paper describes our construction of the Global Financial Development Database and uses the data to compare financial systems around the world. The database provides information on financial systems in 205 economies over the period from 1960 to 2010 and includes measures of (1) size of financial institutions and markets (financial depth), (2) degree to which individuals and firms can and do use financial services (access), (3) efficiency of financial intermediaries and markets in intermediating resources and facilitating financial transactions (efficiency), and (4) stability of financial institutions and markets (stability).

Quantity and Quality Measures of Financial Development: Implications for Macroeconomic Performance

Public Policy Review, 2018

Financial development is often measured by financial depth such as the stock of private credit and market capitalization as a share of GDP. Such a measure focuses on the quantity aspect of financial development. In this paper, we propose measures that capture both the quantity and quality aspects of financial market development. For quantity measures, we construct a composite index with multiple variables which gauge the size and depth of the banking, equity, bond, and insurance markets. For quality measures, we create a composite index that reflects the degree of financial market diversity, liquidity and efficiency, and the institutional environment. The last factor captures the development of legal systems and institutions, human capital, and information and telecommunications infrastructure. We find that the quantity and quality measures are highly correlated with each another for advanced economies and Asian emerging market economies, but not for other economies. The disaggregat...

World Bank Econ Rev 2010 Beck 77 92

This article introduces the updated and expanded version of the Financial Development and Structure Database. The database includes indicators on the size, efficiency, and stability of banks, nonbank financial institutions, and equity and bond markets over 1960 -2007. It also contains indicators of financial globalization. JEL codes: G1, G2