Enhancing Financial Sector Surveillance in Low-Income Countries - Financial Deepening and Macro-Stability
Policy Papers, April 16, 2012
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- Enhancing Financial Sector Surveillance in Low-Income Countries - Financial Deepening and Macro-Stability
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Bibliographic details
- Published: April 16, 2012
- Series: Policy Papers
Objective
- Widen the lens through which surveillance is conducted in LICs to better account for the interplay between financial deepening and macro-financial stability as called for in the 2011 Triennial Surveillance Review.
- Shed light on the policy and institutional impediments in LICs that affect the effectiveness of macroeconomic policies, macro-financial stability, and growth.
- Focus attention on the role of enabling policies in facilitating sustainable financial deepening.
Key findings and emphases
- Financial deepening involves inherent risk-return tradeoffs that are central to surveillance in LICs.
- Policy and institutional impediments in LICs have a bearing on macroeconomic policy effectiveness, macro-financial stability, and growth.
- Enabling policies are critical to facilitating sustainable financial deepening.
Scope and focus
- The paper concentrates on the interaction between financial deepening and macro-financial stability in low-income countries (LICs).
- Emphasis on identifying policy and institutional constraints that influence financial-sector development and macro-stability.
Methods and evidence
- Draws on a range of conceptual and analytical tools.
- Uses empirical analyses.
- Incorporates case studies.
Practical implications and policy orientation
- Surveillance frameworks for LICs should be expanded to incorporate macro-financial linkages associated with financial deepening.
- Policies should be designed to balance the risk-return tradeoffs of financial deepening while supporting macroeconomic stability and growth.
- Institutional reforms and enabling policy settings are highlighted as prerequisites for sustainable financial deepening.
Metadata and publication
- Publication date: April 16, 2012
- Related subject tags: Emerging markets; Financial sector; Financial stability; Financial systems; Low-income developing countries; Surveillance
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- Citation preview present: Format: Chicago; accessed 9/18/2026
Source: Enhancing Financial Sector Surveillance in Low-Income Countries - Financial Deepening and Macro-Stability, April 16, 2012. Canonical URL: https://www.imf.org/en/publications/policy-papers/issues/2016/12/31/enhancing-financial-sector-surveillance-in-low-income-countries-financial-deepening-and-pp4649 (accessed 9/18/2026).