Financial Stability BoardInternational Monetary FundWorld Bank2017-06-202017-06-202011-10-20https://hdl.handle.net/10986/27274The focus of the paper is on five key financial stability issues in Emerging market and developing economies (EMDEs), which have been selected on the basis of their degree of materiality for a reasonably broad range of EMDEs; their implications for regulatory, supervisory or other financial sector policies; and the extent to which these issues are not already being addressed by other international work streams. The paper does not cover other financial stability issues that may also be relevant for EMDEs but are addressed in other G20/Financial Stability Board (FSB) work streams. Such issues include the management of sizeable and volatile capital flows; the design of policy measures to address the risks arising from systemically important financial institutions; the development of macro-prudential policy frameworks; the creation of effective resolution tools and regimes for financial institutions; strengthening the oversight and regulation of the shadow banking system; and reforming the functioning of over-the-counter derivatives and commodities markets. This paper focuses on five key financial stability issues in EMDEs: 1) application of international financial standards; 2) promoting cross-border supervisory cooperation; 3) expanding the regulatory and supervisory perimeter; 4) management of foreign exchange risks; and 5) developing domestic capital markets.en-USCC BY 3.0 IGOACCOUNTINGALLOCATION OF CAPITALALLOCATION OF CREDITAPEX INSTITUTIONARBITRAGEASIAN BOND MARKETSASSET CLASSASSET CLASSIFICATIONASSET MANAGEMENTASSET PRICEASSET QUALITYAVAILABILITY OF CREDITBALANCE SHEETBANK CREDITBANK INTERMEDIATIONBANK LENDINGBANK SUPERVISIONBANKING ASSETSBANKING CRISISBANKING REGULATIONSBANKING SECTORBANKING SYSTEMBONDBOND FUNDBOND INDEXBOND INVESTMENTSBORROWERBRANCH LICENSINGBRANCH NETWORKSBROKERCAPACITY BUILDINGCAPACITY CONSTRAINTSCAPITAL ADEQUACYCAPITAL FLOWSCAPITAL INFLOWSCAPITAL MARKETCAPITAL REQUIREMENTSCASH MANAGEMENTCENTRAL BANKCENTRAL SECURITIES DEPOSITORIESCOLLATERALCOMMERCIAL BANKSCOMPLIANCE COSTSCONFLICTS OF INTERESTCONSUMER CREDITCONSUMER PROTECTIONCORPORATE GOVERNANCECREDIBILITYCREDIT BUREAUSCREDIT COOPERATIVESCREDIT DECISIONSCREDIT GROWTHCREDIT GUARANTEECREDIT HISTORYCREDIT INFORMATIONCREDIT LINESCREDIT RISKCREDIT UNIONSCREDITORSCREDITWORTHINESSCURRENCYCURRENCY COMPOSITIONCURRENCY MISMATCHESDEBT LEVELSDEBT MARKETDEBT OVERHANGDEBTORDEFAULTSDEPOSITDEPOSIT INSURANCEDEPOSITORSDERIVATIVESDERIVATIVES MARKETDISCLOSURE REQUIREMENTSDOMESTIC BANKSDOMESTIC BONDDOMESTIC BOND MARKETSDOMESTIC CAPITALDOMESTIC CAPITAL MARKETSDOMESTIC CURRENCYDOMESTIC FINANCIAL MARKETSEMERGING MARKETENFORCEMENT POWERSEQUITIESEXCHANGE RATEEXCHANGE RATE MOVEMENTSEXTERNAL CREDIT RATINGSEXTERNAL FUNDINGFINANCIAL ASSETSFINANCIAL CRISISFINANCIAL DEVELOPMENTFINANCIAL HEALTHFINANCIAL INSTABILITYFINANCIAL INSTITUTIONSFINANCIAL STABILITYFINANCIAL SUPPORTFINANCIAL SYSTEMFLEXIBLE EXCHANGE RATEFOREIGN BANKFOREIGN CAPITALFOREIGN CURRENCYFOREIGN CURRENCY LOANSFOREIGN DEBTFOREIGN EXCHANGEFOREIGN EXCHANGE RISKFOREIGN FINANCIAL INSTITUTIONSGLOBAL BANKINGGLOBAL ECONOMYGLOBAL FINANCIAL STABILITYGOVERNMENT BORROWINGGOVERNMENT SECURITIESGOVERNMENT SECURITIES MARKETSGROSS DOMESTIC PRODUCTHOST COUNTRYILLIQUIDITYINFLATIONINSTITUTIONAL INVESTORINSURANCEINSURANCE COMPANIESINTEREST RATEINTEREST RATE RISKSINTERNATIONAL BANKINGINTERNATIONAL BANKSINTERNATIONAL STANDARDSINVESTOR BASEINVESTOR REDEMPTIONSLACK OF CREDITLAND TITLELEGAL AGREEMENTSLEGAL AUTHORITYLEGAL CONSTRAINTSLEGAL FRAMEWORKLEGAL FRAMEWORKSLEGAL PROTECTIONLENDERLEVYLIABILITYLIQUID MONEYLIQUIDATIONLIQUIDITY RATIOLIQUIDITY RISKSLOANLOAN CLASSIFICATIONLOAN QUALITYLOAN WAIVERLOCAL CAPACITYLOCAL CURRENCYMACROECONOMIC POLICIESMARKET CAPITALIZATIONMARKET DEVELOPMENTMARKET FOR GOVERNMENT SECURITIESMARKET INFRASTRUCTUREMARKET LIQUIDITYMARKET PARTICIPANTSMARKET REGULATORSMARKET SURVEILLANCEMATURITYMICROFINANCEMICROFINANCE INSTITUTIONSMONETARY FUNDMONETARY POLICYMONEY MARKETSMORAL HAZARDMORTGAGEMORTGAGESMUTUAL FUNDSOPERATIONAL INDEPENDENCEPENSIONPENSION FUNDSPOLICY RESPONSEPORTFOLIOPRICE MOVEMENTSPRIVATE INVESTORSPROVISIONING RULESPRUDENTIAL REGULATIONSPUBLIC DEBTPUBLIC DEBT MANAGEMENTREGULATORY CAPACITYREGULATORY FRAMEWORKRESERVERESERVE BANKRESERVE REQUIREMENTSRETURNSRISK ASSESSMENTSRISK MANAGEMENTRISK MANAGEMENT STRATEGIESSECONDARY MARKETSECONDARY MARKET TRADINGSECURITIES REGULATIONSETTLEMENTSETTLEMENT SYSTEMSSOLVENCYSOVEREIGN DEBTSOVEREIGN ISSUERSUPERVISORY AGENCYSUPERVISORY AUTHORITIESSWAPSTAXTRADINGWARRANTSWITHDRAWALWITHHOLDING TAXWorking PaperWorld Bank10.1596/27274