Abbreviations and Acronyms

A& A AML-CFT ARIC ATM BAAC BCBS BCP BIS BRI CAMEL CSD CSFB DB DC DCP DFI DFID DIS ECB EMDB Anti-Money Laundering and Combating the Financing of Terrorism Asia Regional Information Center Automated teller machine Bank for Agriculture and Agricultural Cooperatives Thailand Basel Committee on Banking Supervision Basel Core Principles (for Effective Banking Supervision) Capital adequacy, Asset quality, Management soundness, Earnings and profitability, Liquidity, and Sensitivity to market risk...

Selected Issues on the Regulation and Supervision of Factoring Companies

Factoring companies are financial institutions that specialize in the business of accounts receivable financing and management. If a factoring company chooses to purchase a firm's receivables, then it will pay the firm a prenegotiated, discounted amount of the face value of the invoices Sopranzetti 1998 . A moral hazard problem develops when the seller's credit management efforts are unobservable to the factoring company Once the entire Box 6.3 Factoring as a Sale and Purchase Transaction...

References

Altman, Edward I., and Paul Narayanan. 1997. Business Failure Classification Models An International Survey. In International Accounting and Finance Handbook, ed. Frederick Choi, chapter 35, 2nd ed. New York Wiley. Bank for International Settlements BIS . 1999. Market Liquidity Research Findings and Selected Policy Implications. CGFS Publication 11 May , Bank for International Settlements, Basel, Switzerland. -. 2001. Structural Aspects of Market Liquidity from a Financial Stability...

Assessing Financial Stability

Financial system stability in a broad sense means both the avoidance of financial institutions failing in large numbers and the avoidance of serious disruptions to the intermediation functions of the financial system payments, savings facilities, credit allocation, efforts to monitor users of funds, and risk mitigation and liquidity services. Within this broad definition, financial stability can be seen in terms of a continuum on which financial systems can be operating inside a stable...

IOSCO Core Principles Relevance to Stability Considerations and Structural Development

The Objectives and Principles of Securities Regulation the IOSCO core principles of the International Organization of Securities Commissions is the key global standard for securities market regulation. The IOSCO bylaws state that the organization's members a will exchange information about their experiences so they can foster the development of domestic markets, b will work together to establish standards and improve market surveillance of international transactions, and c will provide mutual...

Abiad.abdul.2003 Early Warning

Early Warning Systems A Survey and a Regime-Switching Approach. IMF Working Paper 03 32, International Monetary Fund, Washington, DC. Ades, Alberto, Rumi Masih, and Daniel Tenengauzer. 1998. GS-Watch A New Framework for Predicting Financial Crises in Emerging Markets. Emerging Markets Economic Research, December. New York Goldman Sachs. Altman, Edward I., and Paul Narayanan. 1997. Business Failure Classification Models An International Survey. In International Accounting and...

Introduction

The design of policies to foster financial system stability and development has become a key area of focus among policy makers globally. This policy focus reflects the growing evidence that financial sector development can spur economic growth whereas financial instability can significantly harm growth and cause major disruptions, as was seen in the financial crises of the 1980s and 1990s World Bank 2001 .This focus also reflects the recognition that close two-way linkages between financial...

Aggregate Balance Sheet Structure of Financial and Nonfinancial Sectors Intersectoral Linkages

Analysis of stock variables in countries' sectoral balance sheets assets and liabilities of financial firms, non-financial firms, households, government, and sub-sectors of those sectors, as appropriate and the consolidated aggregate balance sheet for the country can help highlight inter-sectoral linkages and can provide valuable information on the adequacy of financial structure and on the potential for financial instability. The balance sheet analysis focuses on a the determinants and...

Annex 1A Tailoring Financial Sector Assessment to Country Needs

Countries with less-developed financial systems may need more attention with respect to medium-term development issues such as institution building and financial market development. Coverage of the financial sector in those countries may thus need to focus on specific aspects of financial sector development, including capacity of banking supervision the legal and regulatory framework for bank and non-bank institutions and payment systems credit information systems, enforcement of creditor...

Overall Analytical and Assessment Framework Executive Summary

This section provides the overall analytical framework for financial sector assessments, motivates the structure of the Handbook in terms of this framework, explains how the subsequent chapters fit into the overall framework, and presents a high-level summary of those chapters as a broad guide to policy makers and assessment teams. The objective of financial sector assessments is to achieve an integrated analysis of stability and development issues using a wide range of analytical tools and...

Financial Soundness Indicators

Financial soundness indicators FSIs are indicators of the current financial health and soundness of the financial institutions in a country, as well as of their corporate and household counterparts, and FSIs play a crucial role in financial stability assessments. FSIs include both aggregated individual institution data and indicators that are representative of the markets in which the financial institutions operate. FSIs are calculated and disseminated for use in macroprudential surveillance,...