The Asian and European Banking Systems: The Case of Spain in the Quest for Development and Stability

Bank of Spain Working Paper No. 0217

42 Pages Posted: 15 Dec 2005

Date Written: July 2002

Abstract

After a brief review of the literature on the determinants of financial development, the paper reviews the Asian and European financial systems in terms of their size and efficiency. It also compares the steps taken in the two regions in the quest for financial development and stability, which in a few cases are very similar but differ markedly in others. While there has been a clear move towards a more balanced financial structure in both regions, financial liberalization, as well as the strengthening of bank regulation and supervision occurred later in Asia and with a different speed and sequencing. The most striking difference between the two areas is the degree of international - and regional - financial integration, much lower for Asia. Finally, the case of Spain - as a European country with a finance-led convergence process - is analyzed in more detail. Lessons are drawn from the Spanish experience for Asian countries.

Keywords: Financial development, financial liberalization,

JEL Classification: G1O, G20

Suggested Citation

Gallego Herrero, Sonsoles and Saurina Salas, Jesus and Garcia-Herrero, Alicia, The Asian and European Banking Systems: The Case of Spain in the Quest for Development and Stability (July 2002). Bank of Spain Working Paper No. 0217. Available at SSRN: https://ssrn.com/abstract=869384 or http://dx.doi.org/10.2139/ssrn.869384

Sonsoles Gallego Herrero

Banco de España ( email )

Madrid 28014
Spain

Jesus Saurina Salas

Banco de España ( email )

Madrid 28014
Spain

BBVA Research ( email )

C/ Azul,4. Edificio La Vela. Planta 4
Madrid, 28050
Spain

Bruegel ( email )

Rue de la Charité 33
B-1210 Brussels Belgium
Belgium

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