The Future Of State-owned Financial Institutions

by Caprio, Gerard; Fiechter, Jonathan L.; Litan, Robert E.

• ISBN13: 9780815713357
• ISBN10: 0815713355
• Format: Paperback
• Copyright: 2005-01-07
• Publisher: Brookings Institution Press

Summary

Research suggests that if the majority of a country's financial institutions are owned by the state, that country will experience slower financial development, less efficient financial systems, less private sector credit, and slower GDP growth. Yet more than 40 percent of the world's population live in countries in which public sector institutions dominate the banking system. In The Role of State-Owned Financial Institutions: Policy and Practicenoted experts discuss the challenges presented by state-owned financial institutions and offer cross-disciplinary solutions for policymakers and banking regulators. The issues include: methods for effectively managing, reforming, and privatizing state-owned banks; the fiscal costs and contingent liabilities of state-owned banks; macroeconomic implications and the impact of state-owned banking on access to credit in an economy; guidance for effective supervision of state-owned banks; managerial perspectives on improving products, human resources, and risk; management case studies of different methods of privatization, such as initial public offerings, employee stock ownership plans, and strategic investorsContributors include David Binns (Beyster Institute), Robert Cull (World Bank), Ron Gilbert (ESOP Services), James A. Hanson (World Bank), Richard Hemming (International Monetary Fund), Fred Huibers (ING Research), Arminio Fraga (formerly Central Bank of Brazil), Nicholas Lardy (Institute for International Economics), David Marston (International Monetary Fund), Moody's Global Investor Service, Herman Mulder (ABN-Amro), William Nichol (Deutsche Bank AG), Urjit Patel (Infrastructure Development Finance Company, India), and P. S. Srinivas (World Bank).

Table of Contents

Preface	ix
1 Introduction	1	(12)
Gerard Caprio, Jonathan L. Fiechter, Robert E. Litan, and Michael Pomerleano
PART ONE Overview of State Ownership in the Financial Sector
2 The Transformation of State-Owned Banks	13	(38)
James A. Hanson
3 Observations from an International Monetary Fund Survey	51	(24)
David Marston and Aditya Narain
PART TWO Fiscal Implications
4 Fiscal Transparency and State-Owned Banks	75	(18)
Manal Fouad, Richard Hemming, Davide Lombardo, and Wojciech Maliszewski
5 State-Owned Banks in China	93	(30)
Nicholas R. Lardy
PART THREE Country Analysis: Indonesia and India
6 State-Owned Banks in Indonesia	123	(58)
P.S. Srinivas and Djauhari Sitorus
7 Role of State-Owned Financial Institutions in India: Should the Government "Do" or "Lead"?	181	(30)
Urjit R. Patel
PART FOUR Managing and Regulating
8 Lessons from Southern Africa	211	(18)
Lewis Musasike, Ted Stilwell, Moraka Makhura, Barry Jackson, and Marie Kirsten
9 Lessons from Indonesia	229	(12)
Pak Rudjito and Hendrawan Tranggana
10 Principles for Supervision	241	(18)
Jonathan L. Fiechter and Paul H. Kupiec
PART FIVE Preparing for Privatization
11 Lessons from Pakistan	259	(10)
Ishrat Husain
12 Lessons from Uganda	269	(10)
Louis Kasekende
PART SIX Achieving Privatization
13 Empirical Studies	279	(36)
George R.G. Clarke, Robert Cull, and Mary Shirley
14 Initial Public Offerings	315	(30)
Fred E. Huibers
15 Employee Stock Ownership Plans	345	(28)
David M. Binns and Ronald J. Gilbert
Contributors	373	(2)
Index	375