Issues in Managing and Sequencing Financial Sector Reforms Lessons From Experiences in Five Developing Countries

October 1, 1992

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Format: Chicago

Issues in Managing and Sequencing Financial Sector Reforms Lessons From Experiences in Five Developing Countries, (USA: International Monetary Fund, 1992) accessed September 19, 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

A review of the experience of five developing countries in reforming their financial systems illustrates the benefits and risks, and provides lessons on the factors which contribute to successful financial sector reforms. Financial sector reforms need to be supported by active monetary policy, and the adoption of new monetary control procedures early in the reform program; reforms should be sequenced consistently with the broader program of macroeconomic adjustment. The pace of liberalization of interest rates and credit should also take account of the solvency of financial and nonfinancial firms. A minimal system of prudential regulation is an essential element of successful financial sector reform.

Subject: Bank credit, Banking, Commercial banks, Credit, Economic sectors, Financial crises, Financial institutions, Financial sector, Money

Keywords: Bank credit, Bank deposit, Call money rate, Capital market, Commercial banks, Credit, Credit market, Discount window, Excess demand, Excess reserves, Financial sector, Foreign exchange, Money bank, Prime rate, Private bank, Private sector, State bank, Time deposit, Universal bank, WP

Publication Details

Pages:

104
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1992/082
Stock No:

WPIEA0821992
ISBN:

9781451954661
ISSN:

1018-5941

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