Developing Countries and the Globalization of Financial Markets

Author/Editor:

Malcolm D. Knight

Publication Date:

July 1, 1998

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper analyzes the impact of the globalization of financial markets on developing and transition economies. Differences between the responses of competitive and imperfectly competitive banking sectors cause them to affect economic activity differently. While nonbank financial markets and institutions can help to increase the competitiveness of banking sectors, there are “gaps” in the institutions and market structures of developing and transition economies. Eliminating these gaps may reinforce financial market discipline in these countries. Some current international initiatives are outlined for enhancing financial system soundness; these emphasize the complementary roles of market discipline and official oversight in an environment of globalized markets.

Series:

Working Paper No. 1998/105

Subject:

Banking Commercial banks Emerging and frontier financial markets Financial institutions Financial markets Financial sector policy and analysis Financial sector stability Loans Stock markets

English

Publication Date:

July 1, 1998

ISBN/ISSN:

9781451852790/1018-5941

Stock No:

WPIEA1051998

Pages:

34

Please address any questions about this title to publications@imf.org