European Parliament Library

Financial Development in the CIS-7 Countries :, Bridging the Great Divide, Gianni De Nicolo, Sami Geadah, Dmitriy Rozhkov

Abstract
This paper documents the great divide in the level of financial development between the Commonwealth of Independent States (CIS) 7 countries and the more advanced economies in transition, in particular those of Central and Eastern Europe and Baltic states. It discusses the roots of financial underdevelopment in the CIS-7 countries by examining the differentials in interest rate spreads between the CIS-7 countries and the transition economies that have achieved faster financial development. The roots of the divide are traced to weaknesses in the institutional infrastructure for financial intermediation, which lead to a combination of low depositor trust in the banking system and high credit risk. High credit risk stems mainly from the poor creditor-rights protection and weak auditing and accounting standards. Financial sector reform strategies that fail to give priority to the resolution of weaknesses in the basic financial infrastructure are unlikely to be successful in letting the CIS-7 countries bridge the great divide
Table Of Contents
""Contents""; ""I. INTRODUCTION""; ""II. THE DIVIDE IN FINANCIAL DEVELOPMENT""; ""III. THE ROOTS OF THE DIVIDE""; ""IV. POLICY PRIORITIES""; ""References""
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (20 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781451919158

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