Banking in Developing Countries in the 1990s
During the 1990s commercial bank deposits and capital rose relative to GDP in the major developing countries. This rise largely reflected the dramatic fall in inflation of the 1990s and financial liberalization. But much of this growth in banks...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2003/11/3060464/banking-developing-countries-1990s http://hdl.handle.net/10986/17905 |
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okr-10986-17905 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
COMMERCIAL BANK DEPOSITS BANK RESTRUCTURING DEPOSIT MOBILIZATION SAVINGS DEPOSITS BANK CREDIT FOREIGN FUNDS ABSORPTION OF DEPOSITS ACCOUNTING ASSET MANAGEMENT ASSET MANAGEMENT COMPANIES BAD LOANS BALANCE SHEET BALANCE SHEETS BANK CAPITAL BANK CREDIT BANK CRISES BANK LIABILITIES BANK LOANS BANK PORTFOLIOS BANK RECAPITALIZATION BANK RESERVES BANK RESTRUCTURING BANKING CRISIS BANKING SECTOR BANKING SYSTEM BANKING SYSTEMS BANKS BLANKET GUARANTEE BONDS BORROWING CAPITAL ACCOUNT CAPITAL ACCOUNTS CAPITAL FIGURES CAPITAL FLIGHT CAPITAL INFLOW CAPITAL INFLOWS CAPITAL REQUIREMENTS CENTRAL BANK CENTRAL BANK DEBT CENTRAL BANKS CERTIFICATES OF DEPOSIT CLOSED ECONOMY COMMERCIAL BANK COMMERCIAL BANK DEPOSITS CONTINGENT LIABILITIES CORPORATE RESTRUCTURING COUNTRY COMPARISON COUNTRY DATA COUNTRY GROUPINGS COUNTRY SAMPLE CREDIT CREDIT ALLOCATION CREDIT CONTROL CREDIT CONTROLS DEBT DEFICITS DEMAND DEPOSITS DEPOSIT GROWTH DEPOSIT RATES DEPOSITORS DEPOSITS DEVALUATION DOLLAR DEPOSITS DOMESTIC BANKS DOMESTIC MARKETS ECONOMIC GROWTH EXCHANGE RATES EXTERNAL FINANCE FINANCIAL ASSETS FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DEPTH FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL LIBERALIZATIONS FINANCIAL REGULATION FINANCIAL REPRESSION FINANCIAL SECTOR FINANCIAL SECTOR PERFORMANCE FINANCIAL SYSTEM FINANCIAL SYSTEMS FOREIGN ASSETS FOREIGN BORROWING FOREIGN CURRENCY FOREIGN CURRENCY DEPOSITS FOREIGN CURRENCY LIABILITIES FOREIGN EXCHANGE FOREIGN EXCHANGE EXPOSURE FOREIGN INVESTORS GDP GLOBAL MARKETS GLOBALIZATION GOVERNMENT BOND MARKETS GOVERNMENT BONDS GOVERNMENT DEBT GROWTH OF GOVERNMENT DEBT GROWTH RATE INFLATION INTEREST RATE INTEREST RATES INTERNATIONAL FINANCIAL STATISTICS INTERNATIONAL RESERVES LENDERS OF LAST RESORT LIQUIDITY LOANABLE FUNDS LOANABLE RESOURCES LOCAL CURRENCY LOW INFLATION MONETARY POLICY NET ASSETS NET GOVERNMENT DEBT NET HOLDINGS OPERATING COSTS POLICIES PORTFOLIO DIVERSIFICATION PRIVATE CREDIT PRIVATE DEBT PRIVATE FIRMS PRIVATE SECTOR PRIVATE SECTOR CREDIT PRIVATE SECTOR FINANCING PRIVATIZATION PUBLIC DEBT PUBLIC ENTERPRISES REAL INTEREST RATES RECAPITALIZATION RESERVE BANK RESERVE BANK OF INDIA RESERVE REQUIREMENTS RESOURCE ALLOCATION RESOURCE MOBILIZATION RISK WEIGHTED ASSETS SAVINGS SAVINGS DEPOSITS SMALL BANKS SOLVENCY STATE ENTERPRISES STOCK OF GOVERNMENT DEBT TAKEOVER TELECOMMUNICATIONS TIME DEPOSITS TRANSITION ECONOMIES ABSORPTION OF DEPOSITS FOREIGN FUNDS |
| spellingShingle |
COMMERCIAL BANK DEPOSITS BANK RESTRUCTURING DEPOSIT MOBILIZATION SAVINGS DEPOSITS BANK CREDIT FOREIGN FUNDS ABSORPTION OF DEPOSITS ACCOUNTING ASSET MANAGEMENT ASSET MANAGEMENT COMPANIES BAD LOANS BALANCE SHEET BALANCE SHEETS BANK CAPITAL BANK CREDIT BANK CRISES BANK LIABILITIES BANK LOANS BANK PORTFOLIOS BANK RECAPITALIZATION BANK RESERVES BANK RESTRUCTURING BANKING CRISIS BANKING SECTOR BANKING SYSTEM BANKING SYSTEMS BANKS BLANKET GUARANTEE BONDS BORROWING CAPITAL ACCOUNT CAPITAL ACCOUNTS CAPITAL FIGURES CAPITAL FLIGHT CAPITAL INFLOW CAPITAL INFLOWS CAPITAL REQUIREMENTS CENTRAL BANK CENTRAL BANK DEBT CENTRAL BANKS CERTIFICATES OF DEPOSIT CLOSED ECONOMY COMMERCIAL BANK COMMERCIAL BANK DEPOSITS CONTINGENT LIABILITIES CORPORATE RESTRUCTURING COUNTRY COMPARISON COUNTRY DATA COUNTRY GROUPINGS COUNTRY SAMPLE CREDIT CREDIT ALLOCATION CREDIT CONTROL CREDIT CONTROLS DEBT DEFICITS DEMAND DEPOSITS DEPOSIT GROWTH DEPOSIT RATES DEPOSITORS DEPOSITS DEVALUATION DOLLAR DEPOSITS DOMESTIC BANKS DOMESTIC MARKETS ECONOMIC GROWTH EXCHANGE RATES EXTERNAL FINANCE FINANCIAL ASSETS FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DEPTH FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL LIBERALIZATIONS FINANCIAL REGULATION FINANCIAL REPRESSION FINANCIAL SECTOR FINANCIAL SECTOR PERFORMANCE FINANCIAL SYSTEM FINANCIAL SYSTEMS FOREIGN ASSETS FOREIGN BORROWING FOREIGN CURRENCY FOREIGN CURRENCY DEPOSITS FOREIGN CURRENCY LIABILITIES FOREIGN EXCHANGE FOREIGN EXCHANGE EXPOSURE FOREIGN INVESTORS GDP GLOBAL MARKETS GLOBALIZATION GOVERNMENT BOND MARKETS GOVERNMENT BONDS GOVERNMENT DEBT GROWTH OF GOVERNMENT DEBT GROWTH RATE INFLATION INTEREST RATE INTEREST RATES INTERNATIONAL FINANCIAL STATISTICS INTERNATIONAL RESERVES LENDERS OF LAST RESORT LIQUIDITY LOANABLE FUNDS LOANABLE RESOURCES LOCAL CURRENCY LOW INFLATION MONETARY POLICY NET ASSETS NET GOVERNMENT DEBT NET HOLDINGS OPERATING COSTS POLICIES PORTFOLIO DIVERSIFICATION PRIVATE CREDIT PRIVATE DEBT PRIVATE FIRMS PRIVATE SECTOR PRIVATE SECTOR CREDIT PRIVATE SECTOR FINANCING PRIVATIZATION PUBLIC DEBT PUBLIC ENTERPRISES REAL INTEREST RATES RECAPITALIZATION RESERVE BANK RESERVE BANK OF INDIA RESERVE REQUIREMENTS RESOURCE ALLOCATION RESOURCE MOBILIZATION RISK WEIGHTED ASSETS SAVINGS SAVINGS DEPOSITS SMALL BANKS SOLVENCY STATE ENTERPRISES STOCK OF GOVERNMENT DEBT TAKEOVER TELECOMMUNICATIONS TIME DEPOSITS TRANSITION ECONOMIES ABSORPTION OF DEPOSITS FOREIGN FUNDS Hanson, James A. Banking in Developing Countries in the 1990s |
| relation |
Policy Research Working Paper;No. 3168 |
| description |
During the 1990s commercial bank
deposits and capital rose relative to GDP in the major
developing countries. This rise largely reflected the
dramatic fall in inflation of the 1990s and financial
liberalization. But much of this growth in banks'
loanable funds was absorbed by increased net holdings of
central bank debt and of government debt. Much of the rise
in government debt reflected post-crisis restructurings,
notably in Brazil, Indonesia, and Mexico, but rising
deficits also played a role. Bank intermediation between
depositors and private sector borrowers remained limited in
many countries despite financial liberalization. The
post-crisis restructurings raise two important issues: the
poor performance of loans that was revealed by the crises
and the future crowding-out that will result from the
spreading-out of the cost of the crisis over time and the
inability to retire the restructuring-related debt. The
absorption of deposits in nonprivate sector credit, the
growth of offshore finance of the private sector, and the
poor performance of loans suggest a weakening of the link
between the traditional measure of financial depth, M2/GDP,
and economic growth and development. The changes in the
1990s also raise issues such as the potential for future
deposit growth, the riskiness of bank portfolios,
banks' increased dependence on government solvency, the
access to credit for firms unable to access global markets,
the foreign exchange exposure of countries, and the
implications of the ongoing changes in regulation and supervision. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Hanson, James A. |
| author_facet |
Hanson, James A. |
| author_sort |
Hanson, James A. |
| title |
Banking in Developing Countries in the 1990s |
| title_short |
Banking in Developing Countries in the 1990s |
| title_full |
Banking in Developing Countries in the 1990s |
| title_fullStr |
Banking in Developing Countries in the 1990s |
| title_full_unstemmed |
Banking in Developing Countries in the 1990s |
| title_sort |
banking in developing countries in the 1990s |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2003/11/3060464/banking-developing-countries-1990s http://hdl.handle.net/10986/17905 |
| _version_ |
1764438458038747136 |
| spelling |
okr-10986-179052021-04-23T14:03:40Z Banking in Developing Countries in the 1990s Hanson, James A. COMMERCIAL BANK DEPOSITS BANK RESTRUCTURING DEPOSIT MOBILIZATION SAVINGS DEPOSITS BANK CREDIT FOREIGN FUNDS ABSORPTION OF DEPOSITS ACCOUNTING ASSET MANAGEMENT ASSET MANAGEMENT COMPANIES BAD LOANS BALANCE SHEET BALANCE SHEETS BANK CAPITAL BANK CREDIT BANK CRISES BANK LIABILITIES BANK LOANS BANK PORTFOLIOS BANK RECAPITALIZATION BANK RESERVES BANK RESTRUCTURING BANKING CRISIS BANKING SECTOR BANKING SYSTEM BANKING SYSTEMS BANKS BLANKET GUARANTEE BONDS BORROWING CAPITAL ACCOUNT CAPITAL ACCOUNTS CAPITAL FIGURES CAPITAL FLIGHT CAPITAL INFLOW CAPITAL INFLOWS CAPITAL REQUIREMENTS CENTRAL BANK CENTRAL BANK DEBT CENTRAL BANKS CERTIFICATES OF DEPOSIT CLOSED ECONOMY COMMERCIAL BANK COMMERCIAL BANK DEPOSITS CONTINGENT LIABILITIES CORPORATE RESTRUCTURING COUNTRY COMPARISON COUNTRY DATA COUNTRY GROUPINGS COUNTRY SAMPLE CREDIT CREDIT ALLOCATION CREDIT CONTROL CREDIT CONTROLS DEBT DEFICITS DEMAND DEPOSITS DEPOSIT GROWTH DEPOSIT RATES DEPOSITORS DEPOSITS DEVALUATION DOLLAR DEPOSITS DOMESTIC BANKS DOMESTIC MARKETS ECONOMIC GROWTH EXCHANGE RATES EXTERNAL FINANCE FINANCIAL ASSETS FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DEPTH FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL LIBERALIZATIONS FINANCIAL REGULATION FINANCIAL REPRESSION FINANCIAL SECTOR FINANCIAL SECTOR PERFORMANCE FINANCIAL SYSTEM FINANCIAL SYSTEMS FOREIGN ASSETS FOREIGN BORROWING FOREIGN CURRENCY FOREIGN CURRENCY DEPOSITS FOREIGN CURRENCY LIABILITIES FOREIGN EXCHANGE FOREIGN EXCHANGE EXPOSURE FOREIGN INVESTORS GDP GLOBAL MARKETS GLOBALIZATION GOVERNMENT BOND MARKETS GOVERNMENT BONDS GOVERNMENT DEBT GROWTH OF GOVERNMENT DEBT GROWTH RATE INFLATION INTEREST RATE INTEREST RATES INTERNATIONAL FINANCIAL STATISTICS INTERNATIONAL RESERVES LENDERS OF LAST RESORT LIQUIDITY LOANABLE FUNDS LOANABLE RESOURCES LOCAL CURRENCY LOW INFLATION MONETARY POLICY NET ASSETS NET GOVERNMENT DEBT NET HOLDINGS OPERATING COSTS POLICIES PORTFOLIO DIVERSIFICATION PRIVATE CREDIT PRIVATE DEBT PRIVATE FIRMS PRIVATE SECTOR PRIVATE SECTOR CREDIT PRIVATE SECTOR FINANCING PRIVATIZATION PUBLIC DEBT PUBLIC ENTERPRISES REAL INTEREST RATES RECAPITALIZATION RESERVE BANK RESERVE BANK OF INDIA RESERVE REQUIREMENTS RESOURCE ALLOCATION RESOURCE MOBILIZATION RISK WEIGHTED ASSETS SAVINGS SAVINGS DEPOSITS SMALL BANKS SOLVENCY STATE ENTERPRISES STOCK OF GOVERNMENT DEBT TAKEOVER TELECOMMUNICATIONS TIME DEPOSITS TRANSITION ECONOMIES ABSORPTION OF DEPOSITS FOREIGN FUNDS During the 1990s commercial bank deposits and capital rose relative to GDP in the major developing countries. This rise largely reflected the dramatic fall in inflation of the 1990s and financial liberalization. But much of this growth in banks' loanable funds was absorbed by increased net holdings of central bank debt and of government debt. Much of the rise in government debt reflected post-crisis restructurings, notably in Brazil, Indonesia, and Mexico, but rising deficits also played a role. Bank intermediation between depositors and private sector borrowers remained limited in many countries despite financial liberalization. The post-crisis restructurings raise two important issues: the poor performance of loans that was revealed by the crises and the future crowding-out that will result from the spreading-out of the cost of the crisis over time and the inability to retire the restructuring-related debt. The absorption of deposits in nonprivate sector credit, the growth of offshore finance of the private sector, and the poor performance of loans suggest a weakening of the link between the traditional measure of financial depth, M2/GDP, and economic growth and development. The changes in the 1990s also raise issues such as the potential for future deposit growth, the riskiness of bank portfolios, banks' increased dependence on government solvency, the access to credit for firms unable to access global markets, the foreign exchange exposure of countries, and the implications of the ongoing changes in regulation and supervision. 2014-04-17T19:09:46Z 2014-04-17T19:09:46Z 2003-11 http://documents.worldbank.org/curated/en/2003/11/3060464/banking-developing-countries-1990s http://hdl.handle.net/10986/17905 English Policy Research Working Paper;No. 3168 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |