| Summary: | Global Financial Development Report 2015/2016 is the third in a World Bank series. It provides a unique contribution to financial
sector policy debates, building on novel data, surveys, research, and wide-ranging country experience, with emphasis on
emerging markets and developing economies. The report’s findings and policy recommendations are relevant for policy makers;
staff of central banks, ministries of finance, and financial regulation agencies; nongovernmental organizations and donors;
academics and other researchers and analysts; and members of the finance and development community.
This year’s report focuses on long-term finance—equity or debt financing with maturity exceeding one year—and establishes
its importance for economic development. Extending the maturity structure of finance is often considered to be at the core of
sustainable financial development. It is needed for private sector construction of plants and investment in machinery and
equipment, as well as financing infrastructure investments. Without long-term finance households cannot invest in housing or
education, or benefit from higher long-term returns on their savings. Attempts at directly boosting the supply of long-term finance
have not been free of controversy, and have sometimes led to substantial costs to taxpayers. The report emphasizes that
governments and international bodies must focus on reforms that help overcome market failures and institutional and policy
weaknesses. They must also improve risk and information sharing, and promote financial literacy and consumer protection.
The report also tracks financial systems in more than 200 economies before and during the global financial crisis.
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