Getting Finance in South Asia 2009 : Indicators and Analysis of the Commercial Banking Sector

by Sophastienphong, Kiatchai; Kulathunga, Anoma

• ISBN13: 9780821375716
• ISBN10: 0821375717
• Edition: CD
• Format: Paperback
• Copyright: 2008-08-15
• Publisher: World Bank

Summary

"This title is part of an initiative by the World Bank to develop standard indicators to measure the performance and soundness of the financial sector in the South Asia region and help pinpoint where performance is strong and where improvements are most needed. Phases I, II, and III, completed with active support and assistance from regulatory authorities in South Asia, compiled a standard set of finance indicators for five countries: Bangladesh, India, Nepal, Pakistan, and Sri Lanka. This first formally published volume encompasses Phase IV of the study, which updates all indicators under the four categories of access to finance, performance and efficiency, stability, and corporate governance, and adds two new categories: capital market developments, and market concentration and competitiveness. The addition of these measures provides a new and more holistic perspective on getting finance in South Asia, and also helps improve our understanding of the financial systems in South Asian countries." "Countries in South Asia have undertaken reforms to reduce government ownership of financial institutions, bring prudential regulations in line with international norms, and strengthen banking supervision. These reforms have borne results. This volume shows that commercial banks in Bangladesh, India, Nepal, Pakistan, and Sri Lanka generally expanded access to finance and improved their performance and efficiency, stability, corporate governance, and market concentration and competitiveness over the period from 2001 to 2006. But results vary widely across and even within these areas, as shown by the countries' rankings on the indicators, which show that, with the notable exception of India, South Asian domestic debt markets are still at an early stage of development."--BOOK JACKET.

Table of Contents

Foreword	p. ix
Acknowledgments	p. xi
About the Authors	p. xiii
Acronyms and Abbreviations	p. xv
Analysis
Introduction	p. 3
Background	p. 3
Development Dimensions and Micro Indicators	p. 4
Access to Finance	p. 4
Performance and Efficiency	p. 5
Financial Stability	p. 5
Capital Market Development	p. 6
Market Concentration and Competitiveness	p. 6
Corporate Governance	p. 7
The Methodology	p. 7
Development of Benchmarks	p. 8
Interpretation of Ranks	p. 9
The Role of Microfinance in South Asia	p. 10
The Getting Finance Indicators: Country Perspective	p. 13
Bangladesh	p. 13
Access to Finance	p. 15
Performance and Efficiency	p. 16
Financial Stability	p. 16
Capital Market Development	p. 17
Market Concentration and Competitiveness	p. 17
Corporate Governance	p. 18
India	p. 19
Access to Finance	p. 21
Performance and Efficiency	p. 21
Financial Stability	p. 22
Capital Market Development	p. 22
Market Concentration and Competitiveness	p. 23
Corporate Governance	p. 23
Nepal	p. 25
Access to Finance	p. 26
Performance and Efficiency	p. 26
Financial Stability	p. 27
Capital Market Development	p. 28
Market Concentration and Competitiveness	p. 29
Corporate Governance	p. 29
Pakistan	p. 31
Access to Finance	p. 31
Performance and Efficiency	p. 33
Financial Stability	p. 33
Capital Market Development	p. 34
Market Concentration and Competitiveness	p. 34
Corporate Governance	p. 35
Sri Lanka	p. 37
Access to Finance	p. 38
Performance and Efficiency	p. 38
Financial Stability	p. 39
Capital Market Development	p. 40
Market Concentration and Competitiveness	p. 40
Corporate Governance	p. 40
Country Rankings on the Getting Finance Indicators	p. 43
Overall Rankings on Development Dimensions	p. 43
Individual Rankings on Micro Indicators	p. 46
Access to Finance	p. 46
Performance and Efficiency	p. 46
Financial Stability	p. 47
Capital Market Development	p. 47
Market Concentration and Competitiveness	p. 47
Corporate Governance	p. 47
An International Perspective	p. 51
Benchmark Comparison (2006)	p. 51
Access to Finance	p. 51
Performance and Efficiency	p. 52
Financial Stability	p. 52
Capital Market Development	p. 54
Market Concentration and Competitiveness	p. 54
International Comparison of Financial Ratios-Benchmark Countries (2006)	p. 55
International Comparison of Financial Ratios-Comparator Groups (2005)	p. 58
Findings and Observations	p. 63
Access to Finance	p. 63
Performance and Efficiency	p. 64
Financial Stability	p. 64
Capital Market Development	p. 64
Market Concentration and Competitiveness	p. 64
Corporate Governance	p. 65
Benchmarking and Comparability	p. 65
Indicators
Compilation Guide for the Getting Finance Indicators for South Asia	p. 69
Access to Finance	p. 69
Performance and Efficiency	p. 71
Financial Stability	p. 73
Capital Market Development	p. 75
Market Concentration and Competitiveness	p. 76
Corporate Governance	p. 78
Methodology	p. 79
Data Compilation	p. 79
Choice of Indicators	p. 79
Method for Country Rankings	p. 80
Corporate Governance	p. 80
Major Policy Developments in the Prudential Regulations of South Asia, 2005-06	p. 85
Bangladesh	p. 85
Implementation of the New Capital Adequacy Framework (Basel II) in Bangladesh	p. 85
Prudential Regulations	p. 85
Other Policy Developments	p. 87
India	p. 88
Implementation of the New Capital Adequacy Framework (Basel II) in India	p. 88
Prudential Regulations	p. 88
Other Policy Developments	p. 91
Nepal	p. 92
Implementation of the New Capital Adequacy Framework (Basel II) in Nepal	p. 92
Prudential Regulations	p. 93
Other Policy Developments	p. 95
Pakistan	p. 96
Implementation of the New Capital Adequacy Framework (Basel II) in Pakistan	p. 96
Prudential Regulations	p. 97
Other Policy Developments	p. 100
Sri Lanka	p. 100
Implementation of the New Capital Adequacy Framework (Basel II) in Sri Lanka	p. 100
Prudential Regulations	p. 101
Other Policy Developments	p. 102
International Best Practices in Corporate Governance	p. 105
Organisation for Economic Co-operation and Development	p. 105
Basel Committee on Banking Supervision	p. 105
Appendixes	p. 109
Getting Finance Indicators for South Asia, by Country and Year	p. 110
Getting Finance Indicators for benchmark countries, 2001-06	p. 132
Benchmark Countries: Data Sources and Notes	p. 138
Corporate Governance Matrix: Questionnaire Responses, 2006	p. 139
References	p. 145
Index	p. 149
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