Transforming Finance in the Middle East and North Africa
This paper argues for a transformation of finance to support the economic and social transformation of the Middle East and North Africa. The paper first documents the existing financial system in the region. The system is heavily skewed toward bank...
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/935611593023039875/Transforming-Finance-in-the-Middle-East-and-North-Africa http://hdl.handle.net/10986/33996 |
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okr-10986-339962022-09-20T00:11:33Z Transforming Finance in the Middle East and North Africa Arezki, Rabah Senbet, Lemma W. FINANCIAL SYSTEM MACROECONOMIC POLICY ECONOMIC GROWTH STRUCTURAL TRANSFORMATION SOCIAL TRANSFORMATION BANKING FINANCIAL TECHNOLOGY FINTECH DIGITAL ECONOMY This paper argues for a transformation of finance to support the economic and social transformation of the Middle East and North Africa. The paper first documents the existing financial system in the region. The system is heavily skewed toward banking, relative to non-banking services, such as stock and corporate bond markets, with significant heterogeneity across countries. Second, the paper discusses the stance of macroeconomic policy in the region, which has had important implications for the destination, profitability, and quality of bank lending and the limited evolution of the financial system. Third, the paper explores the impact of technology on financial development, with particular attention to prospects for the development of fintechs. Entrenched incumbency of banks has limited the role of non-bank operators in fostering market contestability and fintech development. The paper is a call to the authorities and policy makers in the Middle East and North Africa to break with the status quo and business as usual. It underscores the need for a “moonshot approach” focused on establishing the foundations of a new digital economy and its role in promoting a well-functioning and inclusive financial economy to support the development needs of the region. 2020-06-25T16:09:37Z 2020-06-25T16:09:37Z 2020-06 Working Paper http://documents.worldbank.org/curated/en/935611593023039875/Transforming-Finance-in-the-Middle-East-and-North-Africa http://hdl.handle.net/10986/33996 English Policy Research Working Paper;No. 9301 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Middle East and North Africa Middle East North Africa |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
FINANCIAL SYSTEM MACROECONOMIC POLICY ECONOMIC GROWTH STRUCTURAL TRANSFORMATION SOCIAL TRANSFORMATION BANKING FINANCIAL TECHNOLOGY FINTECH DIGITAL ECONOMY |
| spellingShingle |
FINANCIAL SYSTEM MACROECONOMIC POLICY ECONOMIC GROWTH STRUCTURAL TRANSFORMATION SOCIAL TRANSFORMATION BANKING FINANCIAL TECHNOLOGY FINTECH DIGITAL ECONOMY Arezki, Rabah Senbet, Lemma W. Transforming Finance in the Middle East and North Africa |
| geographic_facet |
Middle East and North Africa Middle East North Africa |
| relation |
Policy Research Working Paper;No. 9301 |
| description |
This paper argues for a transformation
of finance to support the economic and social transformation
of the Middle East and North Africa. The paper first
documents the existing financial system in the region. The
system is heavily skewed toward banking, relative to
non-banking services, such as stock and corporate bond
markets, with significant heterogeneity across countries.
Second, the paper discusses the stance of macroeconomic
policy in the region, which has had important implications
for the destination, profitability, and quality of bank
lending and the limited evolution of the financial system.
Third, the paper explores the impact of technology on
financial development, with particular attention to
prospects for the development of fintechs. Entrenched
incumbency of banks has limited the role of non-bank
operators in fostering market contestability and fintech
development. The paper is a call to the authorities and
policy makers in the Middle East and North Africa to break
with the status quo and business as usual. It underscores
the need for a “moonshot approach” focused on establishing
the foundations of a new digital economy and its role in
promoting a well-functioning and inclusive financial economy
to support the development needs of the region. |
| format |
Working Paper |
| author |
Arezki, Rabah Senbet, Lemma W. |
| author_facet |
Arezki, Rabah Senbet, Lemma W. |
| author_sort |
Arezki, Rabah |
| title |
Transforming Finance in the Middle East and North Africa |
| title_short |
Transforming Finance in the Middle East and North Africa |
| title_full |
Transforming Finance in the Middle East and North Africa |
| title_fullStr |
Transforming Finance in the Middle East and North Africa |
| title_full_unstemmed |
Transforming Finance in the Middle East and North Africa |
| title_sort |
transforming finance in the middle east and north africa |
| publisher |
World Bank, Washington, DC |
| publishDate |
2020 |
| url |
http://documents.worldbank.org/curated/en/935611593023039875/Transforming-Finance-in-the-Middle-East-and-North-Africa http://hdl.handle.net/10986/33996 |
| _version_ |
1764479962086113280 |