World Bank2013-09-302013-09-302005-01https://hdl.handle.net/10986/15941The capacity of the banking sector to respond to macroeconomic shocks, and regional uncertainties have been strengthened considerably over the past decade. Historically, the operating environment has been volatile as a result o f pervasive dependence on the hydrocarbon sector and swings in investor confidence associated with uncertainty in the region. This experience has helped shape fairly risk-averse portfolios: the bank-led financial system has functioned with substantial capital-adequacy ratios (CAR), loan-loss provisions, and liquidity buffers. The sector is highly profitable, with returns on assets averaging above 2 percent, supported by a large, low-cost demand deposit base. These buffers are underpinned by an effective regulatory and supervisory structure that proactively contains risk taking through the use o f maximum loan-deposit ratios, caps on individual and corporate indebtedness, and pre-approval requirements on foreign lending. The sector is supported by a modem and efficient payment and settlement infrastructure.en-USCC BY 3.0 IGOATMAUCTIONAUCTION PROCESSBANK ASSETSBANK CAPITALBANK HOLDING COMPANIESBANK LIABILITIESBANK LOANSBANK RECAPITALIZATIONBANK SUPERVISIONBANKING INDUSTRYBANKING LEGISLATIONBANKING SECTORBANKING STRUCTUREBANKING SUPERVISIONBANKING SYSTEMBANKSBIDBONDBOND ISSUANCEBOND MARKETBOND MARKETSBOND PORTFOLIOSBONDSBROKERSCALLCAPITAL MARKETCAPITAL MARKET REGULATIONCAPITAL MARKETSCAPITALIZATIONCAPSCERTIFICATESCHECK CLEARINGCLEARING HOUSECOLLATERALCOMMERCIAL BANKSCONFIDENTIALITYCONNECTED LENDINGCONNECTED PARTIESCONSOLIDATED SUPERVISIONCONSUMER LOANSCONVERTIBLE BONDSCORPORATE BORROWERSCORPORATE GOVERNANCECORPORATE PERFORMANCECOUNTERPARTCREDIT INSTITUTIONSCREDIT RISKCREDIT RISKSCREDIT TRANSFERSCURRENT ACCOUNTSCUSTODIANCUSTODIANSCUSTODYDEALERSDEBTDEBT MANAGEMENTDEBT SECURITIESDEFICIT FINANCINGDEMAND DEPOSITSDERIVATIVE MARKETSDERIVATIVESDISPOSABLE INCOMEDOMESTIC MONEY MARKETSDOUBTFUL LOANSECONOMIC DEVELOPMENTECONOMIC POLICIESEMERGING MARKETSEMPLOYMENTEQUITY STAKEEUROPEAN CENTRAL BANKEXCESSIVE RISKEXCESSIVE RISK TAKINGEXPENDITURESEXPOSUREFINANCIAL AUTHORITIESFINANCIAL INFORMATIONFINANCIAL INSTITUTIONSFINANCIAL INSTRUMENTSFINANCIAL INTERMEDIATIONFINANCIAL LEASINGFINANCIAL MARKETSFINANCIAL POLICIESFINANCIAL POLICYFINANCIAL SECTORFINANCIAL SERVICESFINANCIAL STATEMENTSFINANCIAL SYSTEMFINANCIAL TRANSACTIONSFLOATING RATE NOTESFOREIGN ASSETSFOREIGN BANKSFOREIGN CURRENCYGOVERNMENT SECURITIESGROSS SETTLEMENTGROSS SETTLEMENT SYSTEMHEDGE FUNDSHEDGINGHOUSINGHOUSING DEMANDHOUSING FINANCEINCOMEINDEBTEDNESSINSIDER TRADINGINSTITUTIONAL FRAMEWORKINSURANCEINSURANCE COMPANIESINSURANCE MARKETSINTEGRITYINTEREST RATEINTEREST RATE SWAPINTEREST RATE SWAPSINTEREST RATESINTERNATIONAL SECURITIESINTEROPERABILITYINVENTORYINVESTMENT FUNDINVESTMENT FUNDSINVESTMENT PORTFOLIOSINVESTOR CONFIDENCEISLAMIC FINANCEJUDICIAL SYSTEMLAWSLEASINGLEASING COMPANIESLEGAL FRAMEWORKLEGAL PROTECTIONLEGAL PROVISIONSLIQUIDITYLIQUIDITY RISKLOAN CLASSIFICATIONLOAN GUARANTEEMARKET PARTICIPANTSMARKET RISKMARKET VALUEMATURITIESMATURITYMONETARY POLICYMONETARY UNIONMONEY LAUNDERINGMONEY MARKETMORTGAGESMOVABLE PROPERTYMUTUAL FUNDSNET FOREIGN ASSETSNETTINGNONBANK FINANCIAL INSTITUTIONSNONBANK INSTITUTIONSNONBANKSNONPERFORMING LOANSOFFERINGSOILOVER THE COUNTERPAYMENT CARDSPAYMENT INSTRUMENTSPAYMENT ORDERSPENSIONSPORTFOLIOPORTFOLIOSPRICE RISKPRODUCTIVITYPROFITABILITYPUBLIC INVESTMENTPUBLIC POLICYPURCHASESQUOTASREAL ESTATEREGULATORY APPROACHESREGULATORY FRAMEWORKRESERVE REQUIREMENTSREVERSE REPURCHASERISK TAKINGSAFETY NETSSECURITIESSECURITIES SETTLEMENTSECURITIES SETTLEMENT SYSTEMSSETTLEMENTSETTLEMENT SYSTEMSETTLEMENT SYSTEMSSHARE CAPITALSHAREHOLDINGSSTOCK EXCHANGESTOCK EXCHANGESSUBSTANDARD LOANSSUPERVISORY FRAMEWORKTRANSPARENCYTREASURY BILLSUNEMPLOYMENTUNIVERSAL BANKINGYIELD CURVESWorld Bank10.1596/15941