IEG review of World Bank assistance for financial sector reform / World Bank Independent Evaluation Group.

Format:

• Book
• Government document

Contributor:

• Effron, Laurie.

Language:

English

Subjects (All):

• Banks and banking--Developing countries.
• Banks and banking.
• Financial institutions.
• Management.
• Developing countries.
• Financial institutions--Developing countries--Management.
• World Bank.

Physical Description:

xxiii, 139 pages : illustrations ; 28 cm

Place of Publication:

Washington, D.C. : World Bank, 2006.

Summary:

This evaluation presents an independent assessment of the Bank's support for financial sector reforms over the period FY93-03. It assesses the extent to which the objectives of Bank assistance were achieved, including reducing government ownership of financial intermediaries, decreased market concentration, increased competition and efficiency, healthier and more stable financial intermediaries, and deeper, more developed financial systems. It also examines Bank support for financial sector reforms in countries under crisis.

Contents:

• Objectives of the Review 1
• Caveats on the Scope of Review 2
• Inputs 2
• Organization of the Review 2
• 2 What Constitutes Good Practice? 5
• Historical Perspective 5
• Literature Review 5
• Bank Guidelines and Strategies 8
• Past IEG Recommendations and Management Response 10
• Framework for Evaluation 10
• Part I Assessing Bank Assistance 13
• 3 Trends in Lending and Nonlending 15
• Bank Lending for Financial Sector Reforms 16
• Focus of Financial Sector Reforms 18
• Bank Nonlending Assistance for Financial Sector Reforms 20
• 4 Regional Patterns of Bank Assistance 21
• Europe and Central Asia (ECA) Region Was the Most Active 22
• Africa (AFR) and Latin America and the Caribbean (LAC) Regions Were Early Reformers 22
• East Asia and Pacific (EAP) Region Was Mostly Crisis Driven 24
• Middle East and North Africa (MNA) and South Asia (SAR) Regions Took Conservative Approaches 24
• 5 Quality-at-Entry of Bank Assistance 27
• Quality-at-Entry in Lending 27
• Quality of Nonlending Services 29
• Consistency of Bank Approaches within Countries 30
• Coherence of Bank Approaches across Countries 30
• 6 Outcomes of Bank Loans and Credits 33
• Financial Sector versus Multisector Loans 33
• Trends and Sequencing of Adjustment Loans 36
• 7 Bank Support to Crisis Countries 39
• Did the Bank Anticipate the Crisis? 40
• Bank Response to Crises 42
• Objectives and Designing Loans 43
• Below-Average Achievement 44
• Collaboration with the IMF 47
• Effectiveness and Sustainability of the Bank's Crisis Unit 48
• Bank Leadership during Crisis 48
• Recommendations 49
• Part II Analyzing Results at the Country Level 51
• 8 Country-Level Outputs: Ownership 53
• Shift to Private Ownership 53
• Considerable Progress Has Been Made 53
• Privatization Far from Complete in Many Countries 55
• Quality Matters 56
• Better Outcomes with Prior Financial Restructuring 57
• Other Forms of Bank Restructuring 58
• Avoiding Buildup of NPLs 59
• Closure as an Alternative to Bank Privatization 59
• Privatization Took Longer Than Expected 59
• Unanticipated Problems 60
• Restructuring without Privatization Is Seldom Successful 60
• Recommendations on Restructuring and Privatizing Banks 61
• 9 Country-Level Outputs: Incentives 63
• Changes in the Regulatory Regime Present a Mixed Picture 63
• Regulatory Framework in ECA Region Transition Countries 64
• Implementing Regulations and Better Banking Supervision 65
• Special Topic: Legal Immunity for Supervisors 66
• Special Topic: Deposit Insurance 66
• Recommendations on Improving the Incentive Framework 66
• 10 Country-Level Outcomes: Market Structure, Contestability, Efficiency, and Health 67
• Changes in Market Structure: Bank Concentration 67
• Changes in Contestability 68
• Interest Rate Spread 70
• Health of the Financial System 72
• 11 Country-Level Impact: Financial Sector Depth and Stability 75
• Financial Sector Depth: Positive Findings 75
• Systems Still Shallow in Many Countries 77
• Credit to the Private Sector 77
• Financial Sector Depth: Capital Markets 79
• Did Bank Borrowing Improve Stability? 79
• 12 Findings and Recommendations 83
• Findings 83
• Recommendations 86
• A Data on Trends in Lending and Nonlending 91
• B Outcome Ratings of Bank Loans 99
• C Country-Level Outputs 103
• D Reference Tables 107
• E Country-Level Outcomes 109
• F Definitions and Sources for IEG/DEC Model 113
• G Management Response 117
• H Chairman's Summary, Committee on Development Effectiveness (CODE) 125
• 3.1 Identifying Bank Assistance for the Financial Sector 17
• 3.2 Financial Sector Assessment Program (FSAP) 20
• 4.1 Financial Sector Reforms in the ECA Region: Bank Strategy, Analysis, and Lending 23
• 4.2 Bank Assistance to China 24
• 4.3 Pakistan and Bangladesh: Commitments Explain Differences in Bank Lending 25
• 5.1 Highly Relevant Objectives for Financial Sector Reforms 28
• 5.2 Strong Consistency among Bank Products 30
• 6.1 What a Difference a (Near) Crisis (Sometimes) Makes 37
• 7.1 Objectives of Crisis Lending: Ambitious Reforms 45
• 7.2 Mixed Outcomes 46
• 7.3 Improved Coordination Needed between the World Bank and the IMF 47
• 8.1 Problems Comparing Results among Countries 54
• 8.2 Data on Bank Ownership Can Be Misleading 56
• 8.3 Quality of the Buyer Matters 57.

Notes:

• "This evaluation was written by Laurie Effron ..."--P. ix.
• Includes bibliographical references (pages 135-139).

ISBN:

0821363050

OCLC:

60856233

Publisher Number:

9780821363058