Financial Development in Emerging Europe: The Unfinished Agenda
IMF Working Papers, November 12, 2007
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Bibliographic details
- Authors: Edda Zoli
- Published: November 12, 2007
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451868081.001
Summary assessment of financial development
- This paper assesses the status of financial development in Emerging Europe, analyzes the factors that have shaped it, and discusses policy priorities.
- Financial development has progressed to varying degrees across the region.
- Macroeconomic stability and institutional quality have been important factors shaping development.
- The EU integration process is likely to propel further reforms and shape financial development in EU members.
- In non-EU emerging economies the focus should be on maintaining macroeconomic stability and strengthening law enforceability.
Key findings and factors
- Progress in financial development is heterogeneous across Emerging Europe.
- Important shaping factors identified:
- Macroeconomic stability.
- Institutional quality, including law enforceability.
- EU integration dynamics for member countries.
Policy priorities and recommendations
- For EU members:
- Leverage the EU integration process to propel further reforms shaping financial development.
- For non-EU emerging economies:
- Maintain macroeconomic stability.
- Strengthen enforceability of the law.
- Cross-cutting institutional and market-building recommendations:
- Create a well-functioning government securities market.
- Reinforce corporate governance.
- Strengthen creditor rights protection.
- Promote the emergence of institutional investors.
Related platform notes
- The IMF eLibrary offers over 25,000 IMF publications in multiple formats.
IMF Working Paper: Financial Development in Emerging Europe: The Unfinished Agenda (Working Paper No. 2007/245) by Edda Zoli.