Book

Risks and Returns : Managing Financial Trade-Offs for Inclusive Growth in Europe and Central Asia

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collection.link.136
https://openknowledge.worldbank.org/handle/10986/6001
collection.link.47
https://openknowledge.worldbank.org/handle/10986/2155
collection.name.136
Russian PDFs Available
collection.name.47
Europe and Central Asia Studies
dc.contributor.author
Gould, David Michael
dc.contributor.author
Melecky, Martin
dc.date.accessioned
2016-11-30T17:17:14Z
dc.date.available
2016-11-30T17:17:14Z
dc.date.issued
2017
dc.description.abstract
During the 1990s, Emerging Europe and Central Asia (ECA) chose a model of rapid financial development emphasizing bank credit expansion often funded by foreign capital. Although boosting financial inclusion of firms and households, the model was accompanied by lower efficiency and increased financial vulnerability. After two waves of crises, in the late 1990s and after 2008, ECA’s banking systems again face major stress. The crises and stresses have eroded trust in banks and job creation in credit-dependent firms. ECA’s shallow and illiquid capital markets offer no additional support. Stagnating income growth, particularly of middle- to lower-income earners, has led to increasing dissatisfaction with low productivity growth and limited opportunities. This frustration provides the impetus for reshaping financial policies. A healthy and balanced financial sector could strengthen structural adjustment in ECA’s eastern, oil-dependent economies and innovation in its western countries. Risks and Returns: Managing Financial Trade-Offs for Inclusive Growth in Europe and Central Asia argues for reaching beyond increasing access to credit. ECA countries must build integrated financial systems, enabling prudent financial inclusion in a region significantly lagging in the use of saving products. Striking the right balance across all dimensions of financial development (stability, efficiency, inclusion, and overall depth) is crucial for achieving and sustaining inclusive growth. Redesigning financial policy involves addressing trade-offs often overlooked in the past. Too much credit and imprudent financial inclusion have led to banking crises. Overly stringent regulation to foster financial stability has hindered inclusion and efficiency gains. Both shortfalls have had negative consequences for shared prosperity. Risks and Returns discusses tools and approaches to help policy makers achieve balanced financial development.
en
dc.identifier.isbn
978-1-4648-0967-5
dc.identifier.uri
http://hdl.handle.net/10986/25494
dc.language
English
dc.language.iso
en_US
dc.publisher
Washington, DC: World Bank
dc.relation.ispartofseries
Europe and Central Asia Studies;
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo/
dc.subject
financial development
dc.subject
financial inclusion
dc.subject
financial sector reform
dc.subject
state-owned banks
dc.subject
financial stability
dc.subject
economic growth
dc.subject
shared prosperity
dc.subject
debt markets
dc.subject
access to finance
dc.subject
insurance
dc.subject
household savings
dc.subject
macroprudential policies
dc.title
Risks and Returns
en
dc.title.subtitle
Managing Financial Trade-Offs for Inclusive Growth in Europe and Central Asia
dc.type
Book
okr.date.disclosure
2016-12-06
okr.doctype
Publications & Research
okr.doctype
Publications & Research :: Publication
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/978-1-4648-0967-5
okr.identifier.internaldocumentum
210967
okr.identifier.report
110764
okr.imported
true
okr.language.supported
en
okr.region.administrative
Europe and Central Asia
okr.region.geographical
Central Asia
okr.region.geographical
Eastern Europe
okr.region.geographical
Europe
okr.region.geographical
Europe and Central Asia
okr.topic
Finance and Financial Sector Development :: Access to Finance
okr.topic
Finance and Financial Sector Development :: Contractual Savings
okr.topic
Finance and Financial Sector Development :: Debt Markets
okr.topic
Finance and Financial Sector Development :: Finance and Development
okr.topic
Finance and Financial Sector Development :: Insurance & Risk Mitigation
okr.topic
Poverty Reduction :: Achieving Shared Growth
okr.unit
ECACE

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