Financial Sector Development Policy: The Importance of Reputational Capital and Governance

Posted: 16 Jun 1998

See all articles by Thomas F. Hellmann

Thomas F. Hellmann

University of Oxford - Said Business School; University of Oxford - Said Business School

Kevin C. Murdock

McKinsey & Company and Stanford Graduate School of Business

Date Written: December 14, 1995

Abstract

This paper surveys the main policy debates on financial sector development. It provides a framework for understanding the main functions of the financial system, emphasizing informational problems and their efficient resolution through accumulation of reputational capital and the development of effective governance structures. It examines the existence of alternative financial systems and discusses the choices for developing and transitional economies. It discusses the main areas of financial policy making, such as interest rate regulation, prudential regulation and the importance of securities markets. Finally, it proposes financial restraint as a set of policies that explicitly address the formation of reputational capital and governance structures.

JEL Classification: G18, G21, G28, G32, G38, H11, O16, P51

Suggested Citation

Hellmann, Thomas F. and Murdock, Kevin C., Financial Sector Development Policy: The Importance of Reputational Capital and Governance (December 14, 1995). Sauder School of Business Working Paper. Available at SSRN: https://ssrn.com/abstract=7176

Thomas F. Hellmann (Contact Author)

University of Oxford - Said Business School ( email )

Park End Street
Oxford, OX1 1HP
Great Britain
+44 (0)1865 288937 (Phone)

HOME PAGE: http://www.sbs.ox.ac.uk/community/people/thomas-hellmann

University of Oxford - Said Business School ( email )

Park End Street
Oxford, OX1 1HP
Great Britain
+44 (0)1865 288937 (Phone)

HOME PAGE: http://www.sbs.ox.ac.uk/community/people/thomas-hellmann

Kevin C. Murdock

McKinsey & Company and Stanford Graduate School of Business ( email )

21 S. Clark Street
Suite 2900
Chicago, IL 60603
United States
312-795-7286 (Phone)
253-369-2648 (Fax)

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
970
PlumX Metrics