The objective of the Deposit Insurance Strengthening Project for Serbia is to strengthen the financial and institutional capacity of the Deposit Insurance Agency (DIA), so as to enable it to meet its deposit insurance and bank resolution obligations and serve as a core part of financial sector safety net.
... See More + The project consists of two components: 1) strengthen the financial capacity of the DIA; and 2) strengthen the institutional capacity of the DIA. The first component aims to finance the Deposit Insurance Fund (DIF) to meet productive use requirements as financing for a deposit insurance scheme helps increase confidence in the financial system. The second component will finance technical assistance (TA) in critical areas that are needed to achieve the Disbursement Linked Indicators (DLIs). Technical assistance includes governance, information sharing between safety net providers, recoveries, and oversight of state-owned banks.
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This paper provides new evidence on the factors affecting protracted credit contraction in the wake of the global financial crisis. The paper applies panel vector autoregressions to a global panel that consists of quarterly data for 41 countries for the period 2000-2011 and documents that domestic private credit growth is highly sensitive to cross-border funding shocks around the world.
... See More + This relationship is significantly stronger in Central and Eastern Europe, a region with considerably stronger foreign presence, higher cross-border funding, and elevated loan-to-deposit ratios compared with the rest of the world. The paper shows that high foreign ownership per se does not appear to explain credit response differences to foreign funding shocks. Rather, there is a stronger response in countries that exhibit high loan-to-deposit ratios and a high reliance on foreign funding relative to local deposits. The results suggest that funding model differences were at the heart of the post-crisis credit contraction in several Central and Eastern European countries. These findings have important regulatory and supervisory implications for emerging countries in Central and Eastern Europe as well as for other countries.
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Policy Research Working Paper WPS6783 FEB 01, 2014
This report addresses the insolvency of natural persons following this structure: a first part introduces the objectives and nature of the report, deals with general issues, and describes the foundations of a system for the treatment of the insolvency of natural persons.
... See More + The second part of the report analyzes the core legal attributes of system for the treatment of the insolvency of natural persons: within this system, the most relevant questions are analyzed in depth, namely the design of the system and the institutional framework, access to the system, the participation of creditors, the solutions to the insolvency process, and discharge. The main objective of this report is to provide guidance on the characteristics of an effective insolvency regime for natural persons and on the opportunities and challenges encountered in the development of such a regime. In this regard, the report raises awareness about the importance of a regime for the treatment of the insolvency of natural persons, and explores the advantages and disadvantages of the solutions to the numerous practical issues that have to be confronted in the design of an insolvency regime for natural persons.
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International Debt Statistics (IDS) 2014 presents data and analytical information on the external debt of developing countries for 2012, based on actual flows and debt-related transactions reported to the World Bank Debtor Reporting System (DRS) by 124 developing countries.
... See More + It provides users with comprehensive stock and flow data on the external debt of individual developing countries and for regional and analytical groupings. In addition, IDS showcases the broader spectrum of debt data collected and compiled by the World Bank. These include the high frequency, quarterly data for high-income and selected developing countries reporting to the joint World Bank - International Monetary Fund (IMF) Quarterly External Debt Statistics (QEDS), and the Public Sector Debt (PSD) database launched in 2010. In common with the DRS, these databases promote consistency and comparability across countries through standard definitions and valuation methods. IDS also include a summary analysis of aggregate net capital flows (debt and equity) in 2012.
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The standard macro(prudential) models focus on externalities and treat all prudential instruments as alternative, but equivalent, forms of Pigouvian taxes.
... See More + This paper explicitly models individual banks' risk choices and shows that different prudential instruments affect banks' risk-taking incentives differently. Thus, conflicts may arise between the micro and macro prudential stance.
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Policy Research Working Paper WPS6721 DEC 01, 2013
Deposit insurance is increasingly being recognized as an important part of a country's financial sector safety net. Deposit insurers are using the core principles for effective deposit insurance systems to complete self-assessments to guide them in their strategic planning and ongoing operations.
... See More + So far there have been 13 guided self-assessments facilitated by the International Association of Deposit Insurers or detailed assessments completed through the World Bank and International Monetary Fund's Financial Sector Assessment Program. The results of these assessments show areas of particular concern for deposit insurers. This note references the guidance developed by standard setters on deposit insurance generally and summarizes some of the issues that have developed around the specific application of the core principles.
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This brief showcases the lessons learned from the Africa Round Table (ART), a collaborative forum that has brought together countries from east, west, and southern Africa.
... See More + The forum has led to more than five distinct insolvency reforms that have helped strengthen countries' credit environments. By leveraging their joint capacities, IFC and the World Bank have helped Sub-Saharan African countries address the challenges of the financial crisis, strengthen ties across professions, and in the process create a guiding example for evoking lasting change in a country.
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In crisis times, depositors get anxious, can run on banks, and withdraw their deposits. Correlated withdrawals of bank deposits could be mitigated if bank deposits are more diversified, that is, held by more individuals.
... See More + This paper examines the link between the broader access to bank deposits prior to the 2008 crisis and the dynamics of bank deposit growth during the crisis, while controlling for relevant covariates. Employing proxies for access to deposits and the use of bank deposits, the authors find that greater access to bank deposits can make the deposit funding base of banks more resilient in times of financial stress. Policy efforts to enhance financial stability should thus not only focus on macroprudential regulation, but also recognize the positive effect of broader access to bank deposits on financial stability.
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Policy Research Working Paper WPS6577 AUG 01, 2013
Some of the headings included in this issue of the Development Economics Prospects Group (DECPG) daily economics and financial market commentary newsletter are as follows: development country growth; risk and challenges; financial markets; high-income economics; and developing economies.
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