Getting Finance in South Asia 2010

Kiatchai Sophastienphong

Description

Utilizing standardized indicators from 2001 to 2008, 'Getting Finance in South Asia 2010' analyzes the financial performance and soundness of commercial banks in eight South Asian countries: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. While the indicators cannot predict the onset of a financial crisis, their analysis has identified specific weaknesses in regional financial sectors that should be addressed by the supervisory authorities.

In this current edition of the annual 'Getting Finance' publication, two new development dimensions -- payment systems developments and savings mobilization -- have been added to the six dimensions covered in the previous edition: access to finance, performance and efficiency, financial stability, market concentration and competitiveness, capital market development, and corporate governance. This edition also expands the country coverage to include Afghanistan, Bhutan and Maldives. New benchmark countries have also been added, including emerging countries from outside OECD.
In addition to analyzing the 'Getting Finance' indicators, the book also discusses the challenges facing South Asian banks and the impact of the global financial crisis on their operations. The new material in this edition enables readers to have a more holistic perspective of the indicators in South Asia and a better understanding of the financial systems in the region.
'Getting Finance Indicators 2010' reaffirms the World Bank's commitment to working with developing member countries to promote financial sector development and create financial systems that are sound, stable, supportive of growth and responsive to people's needs.

Sujets

• South Asia
• Commercial bank
• Access to finance
• Corporate governance
• Financial crisis of 2007?2010

Informations

• Publié par: world-bank-publications
• Publié le: 21 juin 2010
• Nombre de lectures: 25
• EAN13: 9780821383926
• Langue: English
• Poids de l'ouvrage: 4 Mo

Extrait

Indicators and Analysis of the Sophastienphong
Getting Finance in South Asia
Kulathunga
Commercial Banking Sector
20
10
Getting
Finance
in
South Asia
2010
Indicators and Analysis
of the Commercial
Banking Sector

Kiatchai Sophastienphong
Anoma Kulathunga30°
20°
10°
60° 70° 80° 90° 100°
SOUTH ASIA REGION
AFGHANISTAN
100°
60°
PAKISTAN
BHUTAN
NEPAL
BANGLADESH
INDIA
Arabian
Sea
Bay of
Bengal
SRI
This map was produced by the INDIAN OCEANLANKA
Map Design Unit of The World Bank.
The boundaries, colors, denominations
and any other information shown on
this map do not imply, on the part of MALDIVES 0 200 400 600 KilometersThe World Bank Group, any judgment
on the legal status of any territory,
or any endorsement or acceptance of 0 100 200 300 400 Miles
such boundaries.
IBRD 3644870° 80° 90°
AUGUST 2008
30°
20°
10°Getting
Finance
in
South Asia
2010Getting
Finance
in
South Asia
2010
Indicators and Analysis
of the Commercial
Banking Sector
Kiatchai Sophastienphong
Anoma Kulathunga© 2010 The International Bank for Reconstruction and Development / The World Bank
1818 H Street NW
Washington DC 20433
Telephone: [phone]
Internet: www.worldbank.org
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All rights reserved
1 2 3 4 13 12 11 10
This volume is a product of the staff of the International Bank for Reconstruction and Develop-
ment / The World Bank. The fi ndings, interpretations, and conclusions expressed in this volume do
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The World Bank does not guarantee the accuracy of the data included in this work. The boundar-
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judgement on the part of The World Bank concerning the legal status of any territory or the endorse-
ment or acceptance of such boundaries.
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ISBN: 978-0-8213-8057-4
eISBN: 978-0-8213-8392-6
DOI: 10.1596/978-0-8213-8057-4
ISSN: 2079-8903
Cover illustration and design: W. Drew Fasick, The Fasick Group, Inc.Contents
Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xi
Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiii
About the Authors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xv
Acronyms and Abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xvii
1. INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Development Dimensions and Micro Indicators . . . . . . . . . . . . . . . . . . . . . . . 2
Access to Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Performance and Effi ciency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Financial Stability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Capital Market Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Market Concentration and Competitiveness . . . . . . . . . . . . . . . . . . . . . . . . . 4
Payment Systems Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Savings Mobilization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
The Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Interpretation of Ranks 8
The Role of Microfi nance in South Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Endnotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
PART I: ANALYSIS
2. PRUDENTIAL REGULATIONS FOR BANKS IN SOUTH ASIA . . . . . . . . 15
Capital Adequacy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Implementation of the Basel II Capital Adequacy Framework . . . . . . . . . . . 17
Asset Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Income Recognition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Write-Off Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Exposure Limits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Directed Lending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Liquidity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Debt Restructuring Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Endnotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
3. THE GETTING FINANCE INDICATORS: COUNTRY PERSPECTIVE . . . 25
Afghanistan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Access to Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Performance and Effi ciency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Financial Stability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Capital Market Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Market Concentration and Competitiveness . . . . . . . . . . . . . . . . . . . . . . . . 30
vvi Getting Finance in South Asia 2010
Payment Systems Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Savings Mobilization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Bangladesh . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Access to Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Performance and Effi ciency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Financial Stability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Capital Market Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Market Concentration and Competitiveness . . . . . . . . . . . . . . . . . . . . . . . . 37
Payment Systems Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Savings Mobilization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Bhutan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Access to Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Performance and Effi ciency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Financial Stability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Capital Market Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Market Concentration and Competitiveness . . . . . . . . . . . . . . . . . . . . . . . . 44
Payment Systems Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Savings Mobilization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
India . . . . . . .