Financial Development: Maturing and Emerging Policy Issues

The World Bank Research Observer, Volume 22, Issue 1, Spring 2007: pp. 67-102

36 Pages Posted: 8 Nov 2012 Last revised: 3 Jan 2013

See all articles by Augusto de la Torre

Augusto de la Torre

Columbia University, School of International & Public Affairs (SIPA), Students

Juan Carlos Gozzi

Independent

Sergio L. Schmukler

World Bank - Development Research Group (DECRG)

Date Written: March 1, 2007

Abstract

In recent decades, financial development policies in emerging market economies have been shaped by a fundamental shift toward market-based financial systems and the lessons from financial crises. Today, there is consensus that financial development depends on financial stability and convergence toward international standards. While the debate on some issues has matured, policy thinking in other areas is changing, fueled by recent experiences. This article analyzes the evolution of policy thinking on financial development and discusses three areas that are important to achieving deeper financial systems: stock market development, small- and medium-size enterprise financing, and defined-contribution pension systems. The main emerging issues in these areas are illustrated using recent experiences in Latin America. The article concludes that there is a need to take a fresh look at the evidence, improve diagnoses, and revisit expectations.

Keywords: financial development, financial stability, financial crises, financial sector reform, financial globalization, access to finance, Latin America

JEL Classification: F36, G15, G18, G20

Suggested Citation

de la Torre, Augusto and Gozzi, Juan Carlos and Schmukler, Sergio, Financial Development: Maturing and Emerging Policy Issues (March 1, 2007). The World Bank Research Observer, Volume 22, Issue 1, Spring 2007: pp. 67-102. Available at SSRN: https://ssrn.com/abstract=2172536

Augusto De la Torre (Contact Author)

Columbia University, School of International & Public Affairs (SIPA), Students ( email )

420 West 118th Street
New York, NY
United States

Juan Carlos Gozzi

Independent ( email )

No Address Available

Sergio Schmukler

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN MC 3-301
Washington, DC 20433
United States
202-458-4167 (Phone)
202-522-3518 (Fax)

HOME PAGE: http://www.worldbank.org/en/about/people/s/sergio-schmukler

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