Benchmarking of financial

system

Financial systems are multidimensional. Four characteristics are of

particular interest for benchmarking financial systems: financial depth,
access, efficiency, and stability. These characteristics need to be
measured for financial institutions and markets

Financial systems come in all shapes and sizes, and differ widely in
terms of the four characteristics. As economies develop, services
provided by financial markets tend to become more important than
those provided by banks.

The global financial crisis was not only about financial instability. In
some economies, the crisis was associated with important changes in
financial depth and access.

Benchmarking of financial
system

Dynamic concept

Different
Name
Role

characteristics based

of characteristics

of capital

Finance

role in developing economy

Cont.

Importance of financial development

Finance

performing in economy

Financial
Equal

development due to finance

circulation of wealth

Report

focuses on policies

The GFDR Database and the

4x2 Measurement Matrix
4x2

Measurement Matrix

Financial

Depth

Financial Access
Financial
Proxy

Efficiency

Variables

Financial Stability

Association of stability with development

Crisis reasons.

Concept of credit growth

Function of each characteristics

Scaling

Cont.

Policy Debate

Economies Gain

Chinas Growth

Commercial Banking Sector (Rapid credit growth reduce stability)

Four by two matrices framework

Cont.

Financial Sectors

Annex
a)

Bank scope

b)

Bloomberg

c)

Global Findex

Cont.

World development Indicator

BIS

Notes
Microfinance
Countries

Guidance

who faces financial crisis

Cont.

Relationship between Growth and Finance