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Finance for growth : policy choices in a volatile world (Vietnamese)

The overall impact of financial globalization on the domestic financial sector is profound. Liberalization of capital flows has effectively made domestic financial repression obsolete. The consequences have not been uniformly favorable. Following liberalization, domestic interest rates in developing countries have moved to a premium over industrial country rates, and can surge at times of currency speculation. Heightened interest rate and exchange rate volatility pose practical risk management difficulties for financial intermediaries and reinforce the need for appropriate infrastructures and incentives for risk containment, as well as for good macropolicies. On the other hand, the cost of equity capital has been reduced by allowing foreign investor access to local equity markets and allowing local firms to list abroad. Increased international flows through the equity markets have not been the major contributor to increased international sources of volatility. In addition to opening access to foreign-sourced financial services, more and more countries have been permitting foreign-owned banks and other financial firms to operate locally. Although this can represent a threat to domestic owners of financial firms, the drawback is outweighed by improved service quality. On all three fronts--debt, equity, and services--the costs and risks as well as the benefits of increased financial globalization. knowledges

Details

  • Author

    Caprio, Gerard Honohan, Patrick

  • Document Date

    2001/04/30

  • Document Type

    Publication

  • Report Number

    22239

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    World,

  • Region

    The World Region,

  • Disclosure Date

    2010/07/01

  • Disclosure Status

    Disclosed

  • Doc Name

    Finance for growth : policy choices in a volatile world

  • Keywords

    Policy making; Financial & private sector development; Government finance; Bank regulation; Financial services; Capital account; Financial liberalization; Equity markets; Debt flows; Interest rates; Exchange rates; Capital intensity; Productivity; Intermediation; Globalization; Cost-benefit analysis,,Accounting,adverse selection,Asset management, asset prices,associated companies,balance sheet,bank deposits,bank failures,bank lending,bank performance,bank privatization,Bank Regulation, bank runs,banking crises,banking systems,Banks,borrowing,capital accumulation,capital flows,capital formation,capitalization,comparative advantage,contractual savings institutions,Debt,deposit insurance, coverage,deposits,econometric evidence,economic development,economic growth,economic sectors,emerging markets,empirical evidence,empirical research,equity markets,Exchange Rates,factoring,financial contracts,financial crises,financial deregulation,financial institutions,financial intermediaries,financial markets,Financial Sector,Financial Services,Financial Stability, financial structures,financial systems,financial transactions, fixed costs,foreign competition,Free Trade, GDP per capita,Globalization,GNP,Gross domestic product,Gross national product,human capital,incentive problems, income,industrial economies,inflation,information problems,insurance systems, interest rates,IPO,laws,life insurance,living standards, macroeconomic policy,macroeconomic stability,market liberalization,market power, Market value,microfinance,moral hazard,mutual funds,NAFTA,Narrow banking, national economies,net worth,Nonperforming loans,Open markets,overhead costs,pensions,per capita income,policy decisions,policy environment, Political economy, price fluctuations,productivity,property rights,public debt,Purchasing power,regulatory forbearance,risk management,Safety Nets,savings,securities,securities markets,small banks,social capital, state banks,statistical data,stock markets,Subordinated debt,subsidiary,substandard loans,total factor productivity,venture capital,wealth

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Citation

Caprio, Gerard Honohan, Patrick

Finance for growth : policy choices in a volatile world (Vietnamese). A World Bank policy research report Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/323961467986239505/Finance-for-growth-policy-choices-in-a-volatile-world