Getting finance in South Asia 2010 : indicators and analysis of the commercial banking sector
Sophastienphong, Kiatchai
Getting finance in South Asia 2010 : indicators and analysis of the commercial banking sector - Washington D.C. World Bank 2010 - xviii,329,ip.;CD-ROM
CONTETNS Foreword xi Acknowledgments xiii About the Authors xv Acronyms and Abbreviations xvii 1. INTRODUCTION 1 Development Dimensions and Micro Indicators 2 Access to Finance 2 Performance and Efficiency 3 Financial Stability 3 Capital Market Development 4 Market Concentration and Competitiveness 4 Payment Systems Development 5 Savings Mobilization 6 Corporate Governance 6 The Methodology 7 Interpretation of Ranks 8 The Role of Microfmance in South Asia 11 Endnotes 12 PART I: ANALYSIS 2. PRUDENTIAL REGULATIONS FOR BANKS IN SOUTH ASIA 15 Capital Adequacy 16 Implementation of the Basel II Capital Adequacy Framework 17 Asset Quality 21 Income Recognition 22 Write-Off Policy 22 Exposure Limits 22 Directed Lending 23 Liquidity 23 Debt Restructuring Policy 23 Endnotes 24 3. THE GETTING FINANCE INDICATORS: COUNTRY PERSPECTIVE 25 Afghanistan 26 Access to Finance 28 Performance and Efficiency 29 Financial Stability 29 Capital Market Development 30 Market Concentration and Competitiveness 30 Payment Systems Development 30 Savings Mobilization 31 Corporate Governance 31 Bangladesh 33 Access to Finance 35 Performance and Efficiency 36 Financial Stability 36 Capital Market Development 37 Market Concentration and Competitiveness 37 Payment Systems Development 38 Savings Mobilization 38 Corporate Governance 39 Bhutan 41 Access to Finance 42 Performance and Efficiency 43 Financial Stability 43 Capital Market Development 43 Market Concentration and Competitiveness 44 Payment Systems Development 44 Savings Mobilization 44 Corporate Governance 45 India 47 Access fo Finance 49 Performance and Efficiency 50 Financial Stability 50 Capital Market Development 51 Market Concentration and Competitiveness 52 Payment Systems Development 52 Savings Mobilization54 Corporate Governance 54 Maldives 57 Access to Finance 59 Performance and Efficiency 60 Financial Stability 60 Capital Market Development 61 Market Concentration and Competitiveness 61 Payment Systems Development 62 Savings Mobilization 62 Corporate Governance 63 Nepal 65 Access to Finance 68 Performance and Efficiency 69 Financial Stability 69 Capital Market Development 71 Market Concentration and Competitiveness 72 Payment Systems Development 72 Savings Mobilization 73 Corporate Governance 73 Pakistan 75 Access to Finance 78 Performance and Efficiency 78 Financial Stability 79 Capital Market Development 81 Market Concentration and Competitiveness 81 Payment Systems Development 82 Savings Mobilization 83 Corporate Governance 83 Sri Lanka 87 Access to Finance 89 Performance and Efficiency 90 Financial Stability 91 Capital Market Development 92 Market Concentration and Competitiveness 93 Payment Systems Development 93 Savings Mobilization95 Corporate Governance 96 Endnotes 98 4. COUNTRY RANKINGS ON THE GETTING FINANCE INDICATORS 101 Composite Ranking 102 Annual Rankings 104 Five-Year Average Rankings on Micro Indicators 106 Access to Finance 106 Performance and Efficiency 106 Financial Stability 106 Capital Market Development 107 Market Concentration and Competitiveness 107 Payment Systems Development 108 Savings Mobilization 108 Corporate Governance 109 Endnotes 113 5. AN INTERNATIONAL PERSPECTIVE 115 Benchmark Comparison 115 Access to Finance 116 Performance and Efficiency 117 Financial Stability 117 Capital Market Development 119 Market Concentration and Competitiveness 119 Payment Systems Development 120 Savings Mobilization 121 Benchmark Comparison with Individual Economies 122 6. FINDINGS AND OBSERVATIONS 129 Access to Finance 130 Performance and Efficiency 130 Financial Stability 130 Capital Market Development 132 Market Concentration and Competitiveness 132 Payment Systems Development 133 Savings Mobilization 133 Corporate Governance 134 Impact of the Financial Crisis 135 PART II: INDICATORS 7. COMPILATION GUIDE FOR THE GETTING FINANCE INDICATORS FOR SOUTH ASIA 139 Access to Finance 139 Performance and Efficiency 141 Financial Stability 143 Capital Market Development 145 Market Concentration and Competitiveness 146 Payment Systems Development 148 Savings Mobilization 150 Corporate Governance 152 Endnotes 153 8. METHODOLOGY 155 Data Compilation 155 Choice of Indicators 55 Method for Country Rankings 156 Financial Indicator Scores. 156 Corporate Governance Scores 157 Financial Soundness Ranking 157 Presentation of Data 157 9. MAJOR POLICY DEVELOPMENTS IN THE PRUDENTIAL REGULATIONS OF SOUTH ASIA, 2007-08 161 Afghanistan 161 Prudential Regulations 161 Other Policy Developments 162 Legislation Enacted 163 Bangladesh 163 Prudential Regulations 163 Other Policy Developments 167 Legislation Enacted 170 Bhutan 170 Prudential Regulations 170 Other Policy Developments 172 Legislation Enacted or Pending 172 India 173 Prudential Regulations 173 Other Policy Developments 177 Legislation Enacted or Pending 179 Maldives 180 Prudential Regulation 180 Other Policy Developments 181 Legislation Enacted or Pending 182 Nepal 182 Prudential Regulations 182 Other Policy Developments 184 Legislation Enacted 185 Pakistan 185 Prudential Regulations 185 Other Policy Developments 191 Legislation Enacted or Pending 192 Sri Lanka 192 Prudential Regulations 192 Other Policy Developments 195 Legislation Enacted 197 Endnotes 198 SPECIAL FEATURE 10 MANAGING THE IMPACT OF THE GLOBAL FINANCIAL CRISIS AND ECONOMIC SLOWDOWN 199 An Overview 200 The Crisis and South Asian Economies 200 Economic Impact 201 Policy Responses and Challenges 206 The Crisis and South Asian Banking Sectors 06 Impact on Banking 208 Policy Responses and Challenges 212 Endnotes 214 APPENDIXES Appendix 1 Prudential Regulations in South Asian Countries, End of 2008 216 Appendix 2.Getting Finance Indicators for South Asia, by Country and Year, 2001-08 242 Appendix 3A Getting Finance Indicators for Benchmark Economies, 2001-08 274 Appendix 3B Data Sources and Notes for Benchmark Economies 296 Appendix 4A Corporate Governance Matrix: Questionnaire Responses for South Asian Countries, 2008 299 Appendix 4B Status of Corporate Governance of Banks in South Asian Countries, 2008 308 Appendix 5 Payment Systems in Place in South Asian Countries 309 Appendix 6 Annual Rankings on the Getting Finance Indicators for South Asian Countries, 2004-08 311 REFERENCES 315 INDEX 321
0821380575
336.0954 / SOP
Getting finance in South Asia 2010 : indicators and analysis of the commercial banking sector - Washington D.C. World Bank 2010 - xviii,329,ip.;CD-ROM
CONTETNS Foreword xi Acknowledgments xiii About the Authors xv Acronyms and Abbreviations xvii 1. INTRODUCTION 1 Development Dimensions and Micro Indicators 2 Access to Finance 2 Performance and Efficiency 3 Financial Stability 3 Capital Market Development 4 Market Concentration and Competitiveness 4 Payment Systems Development 5 Savings Mobilization 6 Corporate Governance 6 The Methodology 7 Interpretation of Ranks 8 The Role of Microfmance in South Asia 11 Endnotes 12 PART I: ANALYSIS 2. PRUDENTIAL REGULATIONS FOR BANKS IN SOUTH ASIA 15 Capital Adequacy 16 Implementation of the Basel II Capital Adequacy Framework 17 Asset Quality 21 Income Recognition 22 Write-Off Policy 22 Exposure Limits 22 Directed Lending 23 Liquidity 23 Debt Restructuring Policy 23 Endnotes 24 3. THE GETTING FINANCE INDICATORS: COUNTRY PERSPECTIVE 25 Afghanistan 26 Access to Finance 28 Performance and Efficiency 29 Financial Stability 29 Capital Market Development 30 Market Concentration and Competitiveness 30 Payment Systems Development 30 Savings Mobilization 31 Corporate Governance 31 Bangladesh 33 Access to Finance 35 Performance and Efficiency 36 Financial Stability 36 Capital Market Development 37 Market Concentration and Competitiveness 37 Payment Systems Development 38 Savings Mobilization 38 Corporate Governance 39 Bhutan 41 Access to Finance 42 Performance and Efficiency 43 Financial Stability 43 Capital Market Development 43 Market Concentration and Competitiveness 44 Payment Systems Development 44 Savings Mobilization 44 Corporate Governance 45 India 47 Access fo Finance 49 Performance and Efficiency 50 Financial Stability 50 Capital Market Development 51 Market Concentration and Competitiveness 52 Payment Systems Development 52 Savings Mobilization54 Corporate Governance 54 Maldives 57 Access to Finance 59 Performance and Efficiency 60 Financial Stability 60 Capital Market Development 61 Market Concentration and Competitiveness 61 Payment Systems Development 62 Savings Mobilization 62 Corporate Governance 63 Nepal 65 Access to Finance 68 Performance and Efficiency 69 Financial Stability 69 Capital Market Development 71 Market Concentration and Competitiveness 72 Payment Systems Development 72 Savings Mobilization 73 Corporate Governance 73 Pakistan 75 Access to Finance 78 Performance and Efficiency 78 Financial Stability 79 Capital Market Development 81 Market Concentration and Competitiveness 81 Payment Systems Development 82 Savings Mobilization 83 Corporate Governance 83 Sri Lanka 87 Access to Finance 89 Performance and Efficiency 90 Financial Stability 91 Capital Market Development 92 Market Concentration and Competitiveness 93 Payment Systems Development 93 Savings Mobilization95 Corporate Governance 96 Endnotes 98 4. COUNTRY RANKINGS ON THE GETTING FINANCE INDICATORS 101 Composite Ranking 102 Annual Rankings 104 Five-Year Average Rankings on Micro Indicators 106 Access to Finance 106 Performance and Efficiency 106 Financial Stability 106 Capital Market Development 107 Market Concentration and Competitiveness 107 Payment Systems Development 108 Savings Mobilization 108 Corporate Governance 109 Endnotes 113 5. AN INTERNATIONAL PERSPECTIVE 115 Benchmark Comparison 115 Access to Finance 116 Performance and Efficiency 117 Financial Stability 117 Capital Market Development 119 Market Concentration and Competitiveness 119 Payment Systems Development 120 Savings Mobilization 121 Benchmark Comparison with Individual Economies 122 6. FINDINGS AND OBSERVATIONS 129 Access to Finance 130 Performance and Efficiency 130 Financial Stability 130 Capital Market Development 132 Market Concentration and Competitiveness 132 Payment Systems Development 133 Savings Mobilization 133 Corporate Governance 134 Impact of the Financial Crisis 135 PART II: INDICATORS 7. COMPILATION GUIDE FOR THE GETTING FINANCE INDICATORS FOR SOUTH ASIA 139 Access to Finance 139 Performance and Efficiency 141 Financial Stability 143 Capital Market Development 145 Market Concentration and Competitiveness 146 Payment Systems Development 148 Savings Mobilization 150 Corporate Governance 152 Endnotes 153 8. METHODOLOGY 155 Data Compilation 155 Choice of Indicators 55 Method for Country Rankings 156 Financial Indicator Scores. 156 Corporate Governance Scores 157 Financial Soundness Ranking 157 Presentation of Data 157 9. MAJOR POLICY DEVELOPMENTS IN THE PRUDENTIAL REGULATIONS OF SOUTH ASIA, 2007-08 161 Afghanistan 161 Prudential Regulations 161 Other Policy Developments 162 Legislation Enacted 163 Bangladesh 163 Prudential Regulations 163 Other Policy Developments 167 Legislation Enacted 170 Bhutan 170 Prudential Regulations 170 Other Policy Developments 172 Legislation Enacted or Pending 172 India 173 Prudential Regulations 173 Other Policy Developments 177 Legislation Enacted or Pending 179 Maldives 180 Prudential Regulation 180 Other Policy Developments 181 Legislation Enacted or Pending 182 Nepal 182 Prudential Regulations 182 Other Policy Developments 184 Legislation Enacted 185 Pakistan 185 Prudential Regulations 185 Other Policy Developments 191 Legislation Enacted or Pending 192 Sri Lanka 192 Prudential Regulations 192 Other Policy Developments 195 Legislation Enacted 197 Endnotes 198 SPECIAL FEATURE 10 MANAGING THE IMPACT OF THE GLOBAL FINANCIAL CRISIS AND ECONOMIC SLOWDOWN 199 An Overview 200 The Crisis and South Asian Economies 200 Economic Impact 201 Policy Responses and Challenges 206 The Crisis and South Asian Banking Sectors 06 Impact on Banking 208 Policy Responses and Challenges 212 Endnotes 214 APPENDIXES Appendix 1 Prudential Regulations in South Asian Countries, End of 2008 216 Appendix 2.Getting Finance Indicators for South Asia, by Country and Year, 2001-08 242 Appendix 3A Getting Finance Indicators for Benchmark Economies, 2001-08 274 Appendix 3B Data Sources and Notes for Benchmark Economies 296 Appendix 4A Corporate Governance Matrix: Questionnaire Responses for South Asian Countries, 2008 299 Appendix 4B Status of Corporate Governance of Banks in South Asian Countries, 2008 308 Appendix 5 Payment Systems in Place in South Asian Countries 309 Appendix 6 Annual Rankings on the Getting Finance Indicators for South Asian Countries, 2004-08 311 REFERENCES 315 INDEX 321
0821380575
336.0954 / SOP