Globalization and National Financial Systems
James A. Hanson, Patrick Honohan, Giovanni Majnoni
World Bank Publications, 2003 - Business & Economics - 282 pages
Given the ease with which capital flows between countries and the impact such flows can have on countries with weak national financial systems, it is clear that finance is a fundamental dimension of globalization.. However, until a financial crisis erupts, analysts and policy-makers often remain focused on the domestic financial market, overlooking the global impact of their choices. The result is that they behave reactively and belatedly to the pressures from abroad. Globalization and National Financial Systems breaks new ground by exploring the challenges, constraints, and opportunities of national financial systems in developing countries, while noting that all such systems must be considered small when viewed in the context of global finance. Banking, securities, contractual savings, and systemic macroeconomic aspects are all considered. The detailed consideration of markets and institutions in a global context takes the reader far beyond the standard analysis of either domestically oriented finance or the macroeconomic implications of capital flows.
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Africa average banking systems billion borrowers capital account capital controls capital markets Claessens coefficient competition contractual savings coun depositors developing countries domestic banks economies of scale effect efficient employers entry example exchange rate financial capital financial markets financial sector financial services firms foreign banks higher Honohan income increase inflation infrastructure institutions integration interest rates International Monetary Fund investment investors issues large countries larger liquidity low-income countries lower macroeconomic market capitalization market liquidity Mauritius MEFN NASDAQ offshore deposits onshore operating pass-through pension funds pension reform pension services pension system percent reduce regression regulation regulatory result returns risk scale economies securities markets share Sharpe ratio small countries small financial systems soft law standards and codes statistically significant stock market stock market indexes Table tion total assets trade transaction trustees turnover ratio U.S. dollar Valdes-Prieto variable Vittas World Bank
Page 78 - Levine (1999): stock market capitalization to GDP, stock market total value traded to GDP, and stock market turnover to GDP.
Page 126 - The estimation is done by weighted least squares, with the weight being the inverse of the number of domestic banks in a country in a given year to correct for varying numbers of banks across countries.
Page 235 - ... lower fees, although it is not clear whether the related reduction in worker choice is sustainable. In this regard, the experience of the Federal Thrift Savings Plan in the United States (covering only federal government workers) is encouraging. Its gross expense ratio has declined steadily as the...
Page 254 - Missale, A., and OJ Blanchard. 1994. "The Debt Burden and Debt Maturity.
Page 232 - ... regulations should allow more diversified portfolios by allowing higher investments in shares, foreign securities, corporate bonds, and asset-backed securities and small investments in venture capital companies. These countries will obtain the benefits from the development of funded pensions and annuities. Gains from financial sector development will initially be concentrated in development of the government bond market and long-term lending through banks. In a second stage, benefits will come...
Page 37 - Holding dollar deposits helps protect against devaluation of the local currency, but this protection is usually bought at a price in the form of lower nominal interest rates...
Page 78 - Measures of Scale Economies in Banking Once a translog cost function is explicitly specified, we can derive parametric estimates of scale economies. We use four measures of scale economies...
Page 64 - Powell, Andrew, and Federico Sturzenegger. 2000. "Dollarization: The Link between Devaluation and Default Risk.