Publication: Financial Sector Policy in Practice : Benchmarking Financial Sector Strategies around the World
Date
2014-01
ISSN
Published
2014-01
Author(s)
Abstract
Policy makers use financial sector
strategies to formulate a holistic policy for their national
financial sectors. This paper examines and rates financial
sector strategies around the world based on how well they
formulate development targets, arrangements for systemic
risk management, and implementation plans. The strategies
are also rated on whether they consider policy trade-offs
between financial development and systemic risk management.
The rated strategies are then benchmarked against a wide
range of country characteristics. The analysis finds that
the scope and quality of national strategies for the
financial sector are influenced by the country's type
of legal system, its level of income and macroeconomic
stability, the existing financial depth and inclusion, the
share of foreign ownership in the national financial sector,
and the experience of past financial crises. Giving due
consideration to policy trade-offs, particularly between
financial development and systemic risk management, remains
the weakest part of these strategies. Countries with civil-
and religious-based law and those with a higher share of
foreign ownership in their financial system address the
policy trade-offs more often.
Link to Data Set
Citation
“Maimbo, Samuel Munzele; Melecky, Martin. 2014. Financial Sector Policy in Practice : Benchmarking Financial Sector Strategies around the World. Policy Research Working Paper;No. 6746. © World Bank, Washington, DC. http://hdl.handle.net/10986/16832 License: CC BY 3.0 IGO.”
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