This volume addresses one of the most topical and controversial issues in banking and financial policy. It explains why governments have felt the need to liberalize banking and finance, for example, by privatizing banks and allowing interest rates to be set by the market. It describes how the consequences have not always been smooth, and considers how financial liberalizations could be approached better in the future.

This volume addresses one of the most topical and controversial issues in banking and financial policy. It explains why governments have felt the need to liberalize banking and finance, for example, by privatizing banks and allowing interest rates to be set by the market. It describes how the consequences have not always been smooth, and considers how financial liberalizations could be approached better in the future. In addition to a clear and concise presentation of current theories and global experience, there are six carefully chosen country case studies.

Faced with a systemic financial sector crisis, policymakers need to make difficult choices under pressure. Based on the experience of many countries in recent years, few have been able to achieve a speedy, lasting and low-cost resolution. This volume considers the strengths and weaknesses of the various policy options, covering both microeconomic (including recapitalization of banks, bank closures, subsidies for distressed borrowers, capital adequacy rules and corporate governance and bankruptcy law requirements) and macroeconomic (including monetary and fiscal policy) dimensions. The...

The dramatic events of the late 1990s brought the issue of financial sector policy in developing countries to the forefront. Much of the international community's policy focuses on financial sector reform including strengthening the prudential regulations and supervision of the financial system along with ensuring that finance can make its most important contribution to economic prosperity through market-driven allocation of investable resources. This book consists of a collection of essays concentrating on financial sector policy issues effecting developing countries. Drawing on the...

This volume examines the possibilities and pitfalls to successful financial sector tax reform from theoretical, empirical and practical perspectives. It explores the possibilities and limitations of 'big ideas' such as removal of all capital income taxation, the application of VAT to financial services or heavy reliance on financial transactions taxes. The risks of attempting to use financial sector taxes as corrective instruments are stressed. Two defensive criteria are advanced as key: making the financial tax system as arbitrage- and inflation-proof as is practicable. Each commissioned...

Financial Sector Policy and the Poor presents new empirical evidence on how financial sector policy can help the poor. It is often thought that promotion of specialized microfinance institutions is the best or only way forward. However, a strong mainstream financial system is also pro-poor - perhaps even more so. While mainstream financial depth is measurably associated with lower poverty, for microfinance this is not yet so. The roles played by microfinance and mainstream finance in tackling poverty should be regarded as complementary and overlapping rather than as competing...

Faced with a systemic financial sector crisis, policymakers need to make difficult choices under pressure. Based on the experience of many countries in recent years, few have been able to achieve a speedy, lasting and low-cost resolution. This volume considers the strengths and weaknesses of the various policy options, covering both microeconomic (including recapitalization of banks, bank closures, subsidies for distressed borrowers, capital adequacy rules and corporate governance and bankruptcy law requirements) and macroeconomic (including monetary and fiscal policy) dimensions. The...