2010年-世界发展银行全球_Financial_Institutions_and_Markets_across_Countries_and_over_Time_16页_560kb

Summary of "Financial Institutions and Markets across Countries and over Time: The Updated Financial Development and Structure Database"

Core Content

This article presents an updated and expanded version of the Financial Development and Structure Database, which provides comprehensive indicators of the size, efficiency, stability, and globalization of financial systems across countries and over the period 1960–2007. The database includes metrics for banks, nonbank financial institutions, equity and bond markets, and financial globalization.

Main Points

1. Purpose and Scope

• The database is a critical tool for analyzing financial sector development and its impact on economic growth and income distribution.
• It covers a wide range of financial institutions and markets, including banks, nonbank financial institutions, equity and bond markets, and financial globalization indicators.
• The data are sourced from primary databases such as the IMF, BankScope, and Swiss Re, ensuring consistency and reducing measurement biases.

2. Key Indicators

I. Financial System Size

• Liquid liabilities to GDP: A traditional measure of financial depth, indicating the total liabilities of financial institutions relative to the economy.
• Stock market capitalization to GDP: Reflects the size of the stock market relative to the economy.
• Private and public bond market capitalization to GDP: Measures the size of domestic debt markets.
• Currency outside banking system to base money: Indicates the proportion of base money not held in bank deposits.
• Financial system deposits to GDP: A stock indicator of deposit resources available for lending.

II. Banking System Indicators

• Bank credit to bank deposits: Measures the extent of credit allocation to the private sector.
• Net interest margin: Reflects the difference between interest income and interest expenses, indicating banking efficiency.
• Overhead cost to total assets: Measures non-interest expenses relative to total assets, also indicating efficiency.
• Cost-income ratio: Measures overhead costs relative to gross revenues, reflecting cost efficiency.
• Bank concentration: The ratio of the top three banks' assets to total sector assets, indicating market structure.
• Return on assets and equity: Measures profitability of banks.
• Z-score: An indicator of banking stability, calculated as the ratio of return on assets and capital–asset ratio to the standard deviation of return on assets.

III. Capital Markets and Insurance Sector Indicators

• Stock market capitalization to GDP: Reflects the size of the stock market.
• Stock market total value traded to GDP: Measures market liquidity.
• Stock market turnover ratio: Indicates market activity relative to its size.
• Number of listed companies per 10,000 people: Measures market development.
• Life and nonlife insurance penetration: Reflects the share of insurance premiums relative to GDP, indicating the depth of the insurance sector.

IV. Financial Globalization Indicators

• International debt issues to GDP: Measures the net flow of international bond issues.
• Loans from nonresident banks to GDP: Reflects the scale of international lending.
• Offshore deposits to domestic deposits: Indicates the degree of financial integration and trust in domestic banking systems.
• Remittance inflows to GDP: Reflects the role of remittances in financial development, particularly for low- and middle-income countries.

3. Trends and Observations

• Financial systems have generally deepened over the past few decades, with most indicators showing positive growth.
• The growth in financial depth has been uneven across income groups and regions, with high-income countries experiencing more significant developments.
• Stock market capitalization to GDP almost doubled between 2003 and 2007.
• Net interest margins have declined, especially in high-income countries, suggesting a search for higher returns through riskier activities.
• Banking stability (z-score) has declined since 1995, particularly in high- and upper middle-income countries, signaling potential risks.
• Financial globalization has increased, but with different drivers across income groups: high-income countries benefit from international lending and bond issues, while low- and middle-income countries benefit from higher remittance flows.
• Offshore deposits are more common in low-income countries, possibly reflecting a lack of trust in domestic systems, though this ratio has halved over the past 12 years.

4. Limitations and Considerations

• The database excludes some detailed indicators due to limited data availability or coverage.
• Data are annual, thus missing short-term trends.
• Measurement biases exist due to varying data quality and accounting standards across countries.
• The data end in 2007, so they do not fully capture the 2008 financial crisis.

Key Information

• The database is available at: http://econ.worldbank.org/financialstructure
• The article references earlier studies such as Levine (2005), Beck (2009), and Beck, Demirguc-Kunt, and Levine (2007) for the finance and growth relationship.
• It also highlights the importance of financial system efficiency and stability in economic performance and poverty reduction.
• The database includes sections for:
  • I. Financial System Size
  • II. Banking System (Structure, Efficiency, Stability)
  • III. Capital Markets and Insurance Sector
  • IV. Financial Globalization
  • V. Areas for Further Research

Conclusion

The updated database offers a valuable resource for researchers and policymakers to analyze financial system development, efficiency, and integration across countries. It underscores the uneven progress in financial deepening and highlights the risks associated with the financial sector's boom, particularly in high-income countries. The data emphasize the importance of financial globalization, with distinct patterns observed among different income groups.