Benchmarking Financial Development

Capitalizing on recent improvements in the availability of cross-country financial sector data, this paper proposes a standard methodology for benchmarking the policy component of financial development. Systematic controls are introduced to isolate...

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Bibliographic Details
Main Authors:	Beck, Thorsten, Feyen, Erik, Ize, Alain, Moizeszowicz, Florencia
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ACCOUNTING ASSET-BACKED SECURITIES ATM ATMS BALANCE SHEET BANK BRANCHES BANK CREDIT BANK DEPOSITS BANK SPREADS BANKING SERVICES BANKING SYSTEM BANKING SYSTEMS BENCHMARKING BENCHMARKS BID BOND BOND ISSUES BOND MARKET BOND MARKET CAPITALIZATION BOND MARKET DEVELOPMENT BOND MARKETS BONDS BORROWER BRANCH NETWORKS BROKER BUSINESS CYCLE CAPITAL ACCUMULATION CAPITAL MARKET CAPITAL MARKETS CENTRAL BANK COLLATERAL COLLECTIVE INVESTMENT COMMERCIAL BANK COMMERCIAL BANK ASSETS CONTRACTUAL SAVINGS CONTRACTUAL SAVINGS INSTITUTIONS CONTRIBUTIONS CORPORATE FINANCE CORPORATE GOVERNANCE COUNTRY TO COUNTRY CREDITOR CREDITOR RIGHTS CRITICAL MASS DATA AVAILABILITY DEBTOR DEPOSIT DEPOSIT ACCOUNT DEPOSIT ACCOUNTS DEPOSIT MONEY BANKS DEPOSIT RATE DEPOSIT TAKING INSTITUTIONS DEPOSITS DEPOSITS BANK DERIVATIVE DERIVATIVE MARKETS DOMESTIC BOND DOMESTIC BOND MARKET ECONOMIC DEVELOPMENT ECONOMIES OF SCALE EFFICIENT MARKETS ENABLING ENVIRONMENT EQUITIES EQUITY MARKET EQUITY MARKET CAPITALIZATION EQUITY MARKET DEVELOPMENT EQUITY MARKETS EQUITY PRICES EXPORTERS FAIR PRICE FINANCE COMPANIES FINANCIAL ACTIVITY FINANCIAL ASSETS FINANCIAL CONTRACTS FINANCIAL DEPTH FINANCIAL DEVELOPMENT FINANCIAL INFORMATION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARY FINANCIAL INTERMEDIATION FINANCIAL MARKET FINANCIAL MARKET DEVELOPMENT FINANCIAL MARKETS FINANCIAL PERFORMANCE FINANCIAL POLICY FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SECTOR INDICATORS FINANCIAL SECTOR POLICIES FINANCIAL SECTOR POLICY FINANCIAL SECTORS FINANCIAL SERVICES FINANCIAL SYSTEM FINANCIAL SYSTEMS FINANCIAL TRANSACTIONS FISCAL POLICY GDP GDP PER CAPITA GLOBAL ECONOMY GLOBALIZATION GOVERNMENT BOND GOVERNMENT POLICIES HOLDINGS HOUSING FINANCE INCOME GROUPS INCOME LEVEL INCOME LEVELS INFLATION INFLATION TARGETING INFORMATION ON PENSION INFORMATION SHARING INSTITUTIONAL INVESTORS INSTRUMENT INSURANCE INSURANCE COMPANIES INSURANCE PENSION INSURANCE PRODUCTS INTEREST EXPENSE INTEREST INCOME INTEREST RATE INTERNATIONAL BANK INTERNATIONAL SETTLEMENTS INTERNATIONAL TRADE INVESTMENT FUNDS INVESTMENT PROJECTS INVESTMENT VEHICLES LACK OF INFORMATION LEGAL FRAMEWORK LENDERS LIQUIDITY LONG TERM SAVINGS LONG-TERM SAVINGS LOW INCOME LOWER INCOME MACROECONOMIC CONDITIONS MACROECONOMIC MANAGEMENT MARKET CAP MARKET CONCENTRATION MARKET DATA MARKET DEVELOPMENT MARKET EFFICIENCY MARKET INTERMEDIARIES MARKET LEVEL MARKET LIQUIDITY MARKET PARTICIPANTS MARKET SIZE MARKET TURNOVER MARKET VALUE MATURITIES MICRO DATA MICROFINANCE MICROFINANCE INSTITUTIONS MIDDLE-INCOME COUNTRIES MONETARY POLICY MORAL HAZARD MUTUAL FUND MUTUAL FUND ASSETS MUTUAL FUNDS OFFSHORE CENTER OFFSHORE CENTERS OFFSHORE FINANCIAL CENTER OFFSHORE FINANCIAL CENTERS OPERATIONAL EFFICIENCY OVERHEAD COSTS PARTICULAR COUNTRY PAYMENT SERVICES PENSION PENSION COMPANIES PENSION FUND PENSION FUND ASSETS PENSION FUNDS PENSIONS PER CAPITA INCOME POLITICAL RISK POVERTY LEVELS PRIVATE BOND PRIVATE BONDS PRIVATE CREDIT PRIVATE FINANCIAL INTERMEDIARIES PRIVATE PENSION PRIVATE PENSION FUNDS PRIVATE SECTOR DEVELOPMENT PRODUCTIVITY PROFIT MARGIN PROFIT MARGINS PUBLIC DEBT PUBLIC OFFERINGS PUBLIC PENSION PUBLIC PENSION SCHEME PUBLIC POLICY REGIONAL DUMMIES RESERVE RESERVE BANK RESERVE REQUIREMENTS RETURNS RETURNS TO SCALE SAFETY NET SALE SECONDARY MARKET SECONDARY MARKET ACTIVITY SECONDARY MARKETS SHAREHOLDERS SIDE EFFECTS STOCK MARKET STOCK MARKET CAPITALIZATION STOCK MARKET TURNOVER STOCK MARKETS STOCK PRICE STOCK RETURN SUSTAINABLE DEVELOPMENT TECHNOLOGICAL CHANGES TRADING TRANSACTION TRANSITION COUNTRIES TURNOVER RATIO TURNOVER RATIOS YIELD CURVE
Online Access:	http://documents.worldbank.org/curated/en/2008/06/9489028/benchmarking-financial-development http://hdl.handle.net/10986/6643

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Summary:	Capitalizing on recent improvements in the availability of cross-country financial sector data, this paper proposes a standard methodology for benchmarking the policy component of financial development. Systematic controls are introduced to isolate main structural country characteristics and a principal components analysis is used to help identify a parsimonious set of ten "core" outcome indicators from a broader set of twenty seven potential indicators covering different dimensions of development in both financial institutions and financial markets. Such a broad-based approach helps reveal important determinants and regularities of the process of financial development. The paper also identifies some of the main data gaps that will need to be filled to allow further progress in financial benchmarking looking forward.

Benchmarking Financial Development

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