Maimbo, Samuel MunzeleMelecky, Martin2014-02-032014-02-032014-01https://hdl.handle.net/10986/16832Policy 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.en-USCC BY 3.0 IGOACCOUNTABILITYACCOUNTINGAMOUNT OF CREDITASSETSBANK ENTRYBANK FOR INTERNATIONAL SETTLEMENTSBANK LOANBANK OF THAILANDBANKING CRISESBANKING CRISISBANKING REGULATIONBANKING SECTORBANKING SYSTEMBANKING SYSTEMSBENCHMARKBENCHMARKINGBENCHMARKSCAPITAL ACCOUNTCAPITAL CONTROLSCAPITAL INFLOWSCAPITAL MARKETCAPITAL MARKETSCENTRAL BANKCENTRAL BANKSCIVIL LAWCIVIL SOCIETYCIVIL SOCIETY ORGANIZATIONSCOMMERCIAL BANKSCOMMON LAWCOMPETITIVE ADVANTAGESCOMPETITIVENESSCOMPREHENSIVE STRATEGIESCOMPREHENSIVE STRATEGYCONSOLIDATED SUPERVISIONCONSUMER LOANSCONSUMER PROTECTIONCONSUMERSCREDIT GROWTHCREDIT INSTITUTIONSCREDIT MARKETSCREDIT RISKCREDIT RISKSDATA AVAILABILITYDEBTDEBT-SERVICING COSTSDEVELOPING COUNTRIESDEVELOPMENT ASSISTANCEDEVELOPMENT BANKDEVELOPMENT ECONOMICSDEVELOPMENT PATHDEVELOPMENT STRATEGIESDEVELOPMENT STRATEGYDOMESTIC BANKINGDOMESTIC BANKSDOMESTIC ECONOMYDOMESTIC MARKETECONOMIC DEVELOPMENTELECTRONIC PAYMENTSEMPLOYMENTENTRY BARRIERSEXCHANGE COMMISSIONEXCHANGE TRANSACTIONSEXPOSURESFINANCIAL CRISESFINANCIAL CRISISFINANCIAL DEEPENINGFINANCIAL DEVELOPMENTFINANCIAL FLOWSFINANCIAL INFRASTRUCTUREFINANCIAL INSTITUTIONSFINANCIAL LIBERALIZATIONFINANCIAL MARKETFINANCIAL MARKETSFINANCIAL POLICIESFINANCIAL REGULATIONFINANCIAL RISKFINANCIAL RISKSFINANCIAL SECTORFINANCIAL SECTOR DEVELOPMENTFINANCIAL SECTOR POLICIESFINANCIAL SECTOR POLICYFINANCIAL SECTOR STABILITYFINANCIAL SECTOR STRATEGIESFINANCIAL SECTOR STRATEGYFINANCIAL SECTORSFINANCIAL SERVICEFINANCIAL SERVICESFINANCIAL STABILITYFINANCIAL STRUCTUREFINANCIAL STRUCTURESFINANCIAL SYSTEMFINANCIAL SYSTEMSFOREIGN BANKFOREIGN BANKSFOREIGN CAPITALFOREIGN CURRENCYFOREIGN CURRENCY EXPOSUREFOREIGN EXCHANGEFOREIGN EXCHANGE RISKFOREIGN EXCHANGE RISKSFOREIGN EXCHANGE TRANSACTIONSFOREIGN OWNERSHIPFUTURE RESEARCHGDPGOVERNMENT INVESTMENTGOVERNMENT OFFICIALSGOVERNMENT OWNERSHIPGOVERNMENT SUBSIDIESGROSS DOMESTIC PRODUCTHOUSINGHUMAN RESOURCEINCOMEINCOME GROUPINCOME GROUPSINCOME LEVELINDEBTEDNESSINFLATIONINFORMATION FLOWINFORMATION TECHNOLOGYINITIATIVEINSURANCEINSURANCE COMPANIESINTEGRITYINTEREST RATEINTEREST RATE RISKSINTERNATIONAL BANKINTERNATIONAL FINANCIAL INSTITUTIONSINVESTIGATIONISLAMIC FINANCELABOR MARKETLAWSLEGAL ENVIRONMENTLEGAL FRAMEWORKLEGAL SYSTEMLEGAL SYSTEMSLEGISLATIVE FRAMEWORKLENDERLENDER-OF-LAST-RESORTLESS DEVELOPED COUNTRIESLEVEL OF INFLATIONLIBERALIZATIONLOAN PORTFOLIOSLOBBYINGLONG-TERM CAPITALLONG-TERM FINANCEMACROECONOMIC ENVIRONMENTMACROECONOMIC ENVIRONMENTSMACROECONOMIC MANAGEMENTMACROECONOMIC POLICIESMACROECONOMIC STABILITYMANDATESMARKET FAILURESMARKET INSTRUMENTSMARKET REGULATIONMIDDLE-INCOME COUNTRYMINISTERMINISTRIES OF FINANCEMONETARY FUNDMONETARY POLICYMONETARY SUPPLYNATIONAL BANKNATIONAL DEVELOPMENTNATIONAL INCOMENDPNONPERFORMING LOANSNPLOUTSTANDING LOANSOVERDUE LOANSPARTICULAR COUNTRYPAYMENT SERVICESPER CAPITA INCOMEPOLITICAL ECONOMYPORTFOLIOSPOSITIVE COEFFICIENTPOSITIVE COEFFICIENTSPOVERTY ALLEVIATIONPRICE STABILITYPRODUCT MARKETSPRODUCTIVITYPRUDENTIAL REGULATIONPUBLIC POLICYREAL ECONOMIC ACTIVITYREAL SECTORREFORM PROGRAMREGRESSION ANALYSISREGULATORSREGULATORY FRAMEWORKREGULATORY POLICYRESERVERESERVE BANKRESERVE BANK OF INDIARETURNRISK EXPOSURERISK MANAGEMENTRISK TAKINGSAVINGSSECURITIESSHARE OF BANK ASSETSSOCIAL COSTSSOCIAL SERVICESSTATE BANKSTATE BANK OF PAKISTANSUBSIDIARIESSUBSIDIARYSUPERVISORY AUTHORITYSYSTEMIC RISKSYSTEMIC RISKSTAXTAX TREATMENTTECHNICAL ASSISTANCETRUST FUNDWorld Bank10.1596/1813-9450-6746