Developing Countries and the Globalization of Financial Markets

July 1, 1998

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Malcolm D. Knight Developing Countries and the Globalization of Financial Markets, (USA: International Monetary Fund, 1998) accessed November 8, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper analyzes the impact of the globalization of financial markets on developing and transition economies. Differences between the responses of competitive and imperfectly competitive banking sectors cause them to affect economic activity differently. While nonbank financial markets and institutions can help to increase the competitiveness of banking sectors, there are “gaps” in the institutions and market structures of developing and transition economies. Eliminating these gaps may reinforce financial market discipline in these countries. Some current international initiatives are outlined for enhancing financial system soundness; these emphasize the complementary roles of market discipline and official oversight in an environment of globalized markets.

Subject: Banking, Commercial banks, Emerging and frontier financial markets, Financial institutions, Financial markets, Financial sector policy and analysis, Financial sector stability, Loans, Stock markets

Keywords: Asia and Pacific, Banking, Banking industry, Capital flows, Central bank, Commercial banks, Demand curve, Developing and transition economies, Emerging and frontier financial markets, Financial markets, Financial sector stability, Financial system soundness, Functioning market, Global, Government securities market, Imperfect competition, International cooperation, Loans, Market discipline, Market regulator, Middle East, Sound financial system, Stock markets, Supervision, WP

Publication Details

Pages:

34
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1998/105
Stock No:

WPIEA1051998
ISBN:

9781451852790
ISSN:

1018-5941

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