Publication: South Asian Bond Markets : Developing Long-Term Finance for Growth
Date
2008
ISSN
Published
2008
Author(s)
Sophastienphong, Kiatchai
Mu, Yibin
Saporito, Carlotta
Abstract
Bond markets play an essential part in
economies. As part of a diversified financial system, a
well-developed domestic bond market can help provide the
long-term financing needed for sustainable growth. It can
also produce broad-ranging benefits throughout the economy.
In South Asia the development of domestic debt securities
markets lags. The markets remain small compared both with
the size of the region's economies and with markets in
East Asia. Even in India the market is still small relative
to Gross Domestic Product (GDP), suggesting that long-term
debt financing remains at an early stage in the region.
Equity markets and banks still dominate South Asian
financial systems. Measures are needed to enhance both the
depth and the breadth of South Asian bond markets, to bring
them into line with those in East Asia and, in the long run,
with those in Organization for Economic Co-operation and
Development (OECD) countries. This study assesses domestic
debt securities markets in South Asia, identifies
constraints to their development, and recommends measures
for developing deeper, broader, and more efficient markets
that can provide a competitive source of finance across a
wide range of maturities for different debt issuers. The
study covers five countries-Bangladesh, India, Nepal,
Pakistan, and Sri Lanka. Within the region the development
of domestic debt securities markets varies widely.
India's is the most developed. Its experience, along
with those of East Asian economies, suggests that much
potential remains for developing South Asian bond markets
and expanding their contribution to growth and development.
Greater regional integration of South Asian bond markets
could add to the benefits.
Link to Data Set
Citation
“Sophastienphong, Kiatchai; Mu, Yibin; Saporito, Carlotta. 2008. South Asian Bond Markets : Developing Long-Term Finance for Growth. © Washington, DC : World Bank. http://hdl.handle.net/10986/6584 License: Creative Commons Attribution CC BY 3.0 IGO.”