Strengthening financial systems in developing countries : the case for incentives-based financial sector reforms

摘要: An international cooperative effort has been focused on the need to reduce financial fragility and systemic risks in global markets. Work is proceeding three different areas: enhancing market transparency, improving architecture, strengthening systems. Strengthening systems (the focus of this paper) means cooperating promote principles sound practices for stability through development well-functioning discipline. Financial sector reform much more than setting rules, articulating standards, approving legislation, creating new institutions. All are important but ultimately behavior must be changed if there meaningful lasting reform. For that reason, paper emphasizes role incentives induce appropriate behavior. Developing countries have made progress toward improved supervision past few years. Reforming sectors a lengthy complex process institution building incentive reorientation, whose success requires full ownership of, participation in, by society its government.