商品簡介
During the 1990s, Emerging Europe and Central Asia (ECA) opted for a model of rapid financial development focused on bank credit expansion often funded by foreign capital. This model helped boost the financial inclusion of firms and households, but was also accompanied by lower financial efficiency and increased vulnerability to banking crises.ECA experienced two waves of banking crises in the late 1990s and after 2008. Today, many of ECA’s banking systems are again under major stress. The crises and stresses have eroded trust in banks and job creation in credit dependent firms. In addition, ECA’s shallow and illiquid capital markets fail to act as the second leg of financial intermediation that could support financial stability and efficiency.The need for financial sector reforms has become more urgent as stagnating income growth, particularly of middle- to lower-income earners, is leading to increased dissatisfaction with the status quo of low productivity growth and limited access to opportunities. This demand for change can be the impetus for rebalancing financial policies to support higher and more inclusive growth. A healthy and balanced financial sector is needed to support structural adjustment in the oil dependent economies of the eastern side ECA and greater innovation in the countries of the western part of ECA. This report argues that financial development must reach beyond increasing access to credit. ECA countries should strive to build balanced financial systems integrating both bank and non-bank markets, enabling prudent financial inclusion. Most importantly, ECA falls significantly behind other world regions in the use of saving products. Striking the right balance across all dimensions of financial development (stability, efficiency, inclusion, and overall depth) is crucial for achieving and sustaining inclusive growth. Redesigning financial policy involves addressing financial trade-offs that were often overlooked in the past. Too much credit and imprudent financial inclusion have led to banking crises. Too stringent regulation to ensure financial stability has hindered financial inclusion and efficiency gains. Both shortfalls have had negative consequences for shared prosperity. The report discusses tools and approaches that can help financial policy makers achieve balanced financial development.
